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5. O'Neill, Incorporated's segmented income statement for the most recent month is given below. Sale Vario Total $153,800 58,362 Store A $63,400 28,530 Store B

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5. O'Neill, Incorporated's segmented income statement for the most recent month is given below. Sale Vario Total $153,800 58,362 Store A $63,400 28,530 Store B $90,400 29,832 xpenses Contribution margin Traceable fixed expenses 95,438 69,700 34,870 15,100 60,568 54,600 $19,770 $5,968 Segment margin Common fixed expenses 25.738 16,300 Net operating income $ 9,438 The marketing department believes that a promotional campaign at Store A costing $10,500 will increase sales by $22,300. If its plan is adopted, overall company net operating income should: decrease by $1765 decrease by $8,095 increase by $11,800 increase by $1,765 Tullius Corporation has received a request for a special order of 8,800 units of product C64 for $45.70 each. The normal selling price of this product is $50.80 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows: Or Direct materials Dire Varia manufacturing overhead Fixed manufacturing overhead Unit product cost $16.50 5.80 3.00 5.90 $31.20 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product C64 that would increase the variable costs by $5.40 per unit and that would require a one-time investment of $45.200 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: Determine the effect on the company's the incremental net operating income of accepting the special order. Incremental net operating income

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