Operating results for department B of Delta Company during 2019 are as follows:

If department B could maintain the same physical volume of product sold while raising selling prices an average of 5% and making an additional advertising expenditure of \($30,000,\) what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.)

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Sales... Cost of goods sold Gross profit.. Direct expenses Common expenses. Total expenses. Net loss.. $540,000 378,000 $162,000 $120,000 66,000 $186,000 $ (24,000)