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

If department B could maintain the same physical volume of product sold while raising selling prices an average of 10% and making an additional advertising expenditure of \($50,000,\) 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 $215,000 123,000 $338,000 $ (18,000)