Analyzing Operational Changes Operating results for department B of Delta Company during 2016 are as follows: Sales Cost of goods sold Gross profit Direct expenses Common expenses Total expenses Net loss $530,000 378,000 152,000 120,000 66,000 186,000 $(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 15%, the effect on net income (loss) would be $ 36,000x