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

Sales		$525,000
Cost of goods sold		378,000
Gross profit		147,000
Direct expenses		120,000
Common expenses		66,000
Total expenses		186,000
Net loss		$(39,000)

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? (Ignore income tax in your calculations.)

Use a negative sign with your answer to indicate if the effect increases the company's net loss.

If Department B increased its selling price by 15%, the effect on net income (loss) would be $Answer.

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