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Problem 22-05A a-c (Video) (Part Level Submission) Sandhill Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional
Problem 22-05A a-c (Video) (Part Level Submission) Sandhill Willis is the advertising manager for Bargain 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 $16,600 in fixed costs to the $136,000 currently spent. In addition, Sandhill is proposing that a 596 price decrease ($20 to $19) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $12 per pair of shoes, Management is impressed with Sandhill's ideas but concerned about the effects that these changes will have on the break even point and the margin of safety Your answer is partially correct. Try again. Prepare a CVP income statement for current operations and after Sandhill's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current New Sales Variable Expenses ODDDD Contribution Margin Fixed Expenses Net Income/(Loss)
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