Transcribed Image Text
In: AccountingOriole Willis is the advertising manager for Bargain Shoe Store.She is currently working on a...Oriole Willis is the advertising manager for Bargain Shoe Store.She is currently working on a major promotional campaign. Her ideasinclude the installation of a new lighting system and increaseddisplay space that will add $ 39,000 in fixed costs to the $423,000 currently spent. In addition, Oriole is proposing that a 5%price decrease ($ 60 to $ 57) will produce a 20% increase in salesvolume ( 20,000 to 24,000). Variable costs will remain at $ 36 perpair of shoes. Management is impressed with Oriole’s ideas butconcerned about the effects that these changes will have on thebreak-even point and the margin of safety.Prepare a CVP income statement for current operations and afterOriole’s changes are introduced.sales current newvariable expensecontribution marginnet income