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Analyzing Operational Changes Operating results for department B of Delta Company during 2016 are as follows: Sales $538,000 Cost of goods sold 378,000 Gross profit

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

Sales $538,000
Cost of goods sold 378,000
Gross profit 160,000
Direct expenses 120,000
Common expenses 66,000
Total expenses 186,000
Net loss $(26,000)

Suppose that department B could increase physical volume of product sold by 10% if it spent an additional $17,000 on advertising while leaving selling prices unchanged. What effect would this have on the department's net income or net loss? (Ignore income tax in your calculations.)

Use a negative sign to indicate a net loss answer; otherwise do not use negative signs with your answers.

Sales Answer
Cost of goods sold Answer
Gross profit Answer
Direct expenses Answer
Common expenses Answer
Total expenses Answer
Net income (loss) Answer

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