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The Brown Shoe Company produces its famous shoe that sells for $60 per pair. Operating income for 2021 is as follows: Sales Revenue ($60 per

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The Brown Shoe Company produces its famous shoe that sells for $60 per pair. Operating income for 2021 is as follows: Sales Revenue ($60 per pair) $300,000 Variable cost ($25 per pair) 125,000 Contribution margin $175,000 Fixed cost 100,000 Operating income $75,000 Brown Shoe Company would like to increase its profitability over the next year to at least 25%. To do so, the company is considering the following options: 1. Spend $30,000 on a new advertising campaign, which would increase sales by 20%. 2. Add a second manufacturing facility which would double Brown's fixed costs but would increase sales by 60%. Required: Evaluate each of the alternatives considered by Brown Shoes. Do any of the options meet or exceed Brown's targeted increase in income of 25%

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