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Use the following information to answer Questions 4 through 6. Shoe Style sells imitation designer shoes. It practices just-in-time inventory and holds zero inventory. It

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Use the following information to answer Questions 4 through 6. Shoe Style sells imitation designer shoes. It practices just-in-time inventory and holds zero inventory. It expects the current fiscal year to have the same costs, selling prices, demand and production as last fiscal year. The company reported the following information for its last fiscal year. Units produced and sold 12,000 pairs Selling price $42 per pair Per pair cost (based on actual production) Direct materials $10.00 Direct labor $8.00 Variable manufacturing overhead $2.00 Variable selling expenses $7.00 Total fixed manufacturing overhead $57,000 Total fixed selling expenses $36,000The sales manager believes the company could increase sales volume by 15% if it were willing to incur a xed advertising cost of $14,000. Should it undertake this advertising? By what amount would prot change if it did undertake the advertising? 0 Yes. Increase by $13,000 0 No. Decrease by $14,000 0 None of the above O Yes. Increase by $27,000

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