Lisa Willis is the advertising manager for Bargain Shoe Store. She is currently working on...

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Accounting

Lisa 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 $18,000 in fixed costs to the
$129,000 currently spent. In addition, Lisa 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 Lisa's ideas but
concerned about the effects that these changes will have on the break-even point and the margin of safety.
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