Operating results for department B of Delta Company during 2016 are as follows:

If department B could maintain the same physical volume of product sold while raising selling prices an average of 15% and making an additional advertising expenditure of $45,000, 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 $540,000 378,000 $162,000 $120,000 66,000 $186,000 $ (24,000)