Mary Willis is the advertising manager for Bargain shoe Store. She is currently working on a major promotional campaign.

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answerhappygod
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Mary Willis is the advertising manager for Bargain shoe Store. She is currently working on a major promotional campaign.

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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 $29,000 in fixed costs to the $270,000
currently spent. In addition, Mary is proposing that a 5% price
decrease ($40 to 38$) will produce a 25% increase in sales volume
(20,000 to 25,000). Variable costs will remain at $25 per pair of
shoes. Management is impressed with Mary'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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