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Analyzing Operational Changes Operating results for department B of Delta Company during 2016 are as follows: Sales Cost of goods sold 378,000 Gross proft Direct
Analyzing Operational Changes Operating results for department B of Delta Company during 2016 are as follows: Sales Cost of goods sold 378,000 Gross proft Direct expenses Common expenses66,000 Total expenses Net loss $530,000 152,000 120,000 186,000 $(34,000) 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 $40,000, 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 1 596, the effect on net income (loss) would be $ 5,500
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