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Prepare a CVP income statement for current operations and after Mary's changes are introduced. BRAMBLE SHOE STORE CVP Income Statement Current New T Sales A

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Prepare a CVP income statement for current operations and after Mary's changes are introduced. BRAMBLE SHOE STORE CVP Income Statement Current New T Sales A 1,200,000 1,368,000 T Variable Expenses 720,000 864,000 T Contribution Margin Fixed Expenses - T Net Income/(Loss) ] Would you make the changes suggested? Mary Willis is the advertising manager for Bramble Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $57,600 in fixed costs to the $396,000 currently spent. In addition, Mary is proposing that a 5% price decrease ($60 to $57) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $36 per pair of shoes. Management is impressed with Mary's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety

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