Operating results for department B of Shaw 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 6% and making an additional advertising expenditure of \($40,000\), what would be the effect on the department's net income or net loss?

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Sales.... Cost of goods sold. Gross profit.. Direct expenses Common expenses.. Total expenses. Net loss. $800,000 480,000 $320,000 $200,000 123,000 $323,000 $ (3,000)