$$396,000$ currently spent. In addition, Barbara is proposing that a $5\%$ price decrease $($ $$60$ to $$57)$ will produce a $20\%$ increase in sales

volume $(20,000$ to $24,000).$ Variable costs will remain at $$36$ per pair of shoes. Management is impressed with Barbara's ideas but

concerned about the effects that these changes will have on the break$-$even point and the margin of safety.

$($a$)$

Prepare a CVP income statement for current operations and after Barbara's changes are introduced.

BARGAINSHOE STORE

CVP Income Statement

Current

New

$

${?}_{|}{?}_{?}$

$

eTextbook and Media

Attempts: $0$ of $10$ used

$($b$)$

The parts of this question must be completed in order. This part will be available when you complete the part above.

$($c$)$

The parts of this question must be completed in order. This part will be available when you complete the part above.