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Analyzing Operational Changes Operating results for department B of Delta Company during 2016 are as follows Sales Ct of ods sold 38,000 Gross profit Direct
Analyzing Operational Changes Operating results for department B of Delta Company during 2016 are as follows Sales Ct of ods sold 38,000 Gross profit Direct expenses Common expenses 66,000 Total expenses Net loss $530,000 52,000 20,000 186,000 $(34,000) Ii deparieniB could maintain the same physical volume oi produci 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? (lgnore 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 $ 5,500 x
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