How can I prepare a CVP income statement for current operations and after Orioles changes are introduced.

Oriole 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 $31,900 in fixed costs to the $297,000 currently spent. In addition, Oriole is proposing that a 5% price decrease ($40 to $38) will produce a 25% increase in sales volume (22,000 to 27,500). Variable costs will remain at $25 per pair of shoes. Management is impressed with Orioles ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety.