Business, 13.03.2020 23:54 blaizelange4296
Mary 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 $18,200 in fixed costs to the $133,000 currently spent. In addition, Mary is proposing that a 5% 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 Mary's ideas but concemed about the effects that these changes will ave on the break-even point and the margin of safety.
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Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major p...
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