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Analyzing Operational Changes Operating results for department B of Shaw Company during 2016 are as follows: Sales Cost of goods sold Gross profit Direct expenses
Analyzing Operational Changes Operating results for department B of Shaw Company during 2016 are as follows: Sales Cost of goods sold Gross profit Direct expenses $780,000 480,000 300,000 215,000 123,000 338,000 $(38,000) Common expenses Total expenses Net loss If department B could maintain the same physical volume of product sold while raising selling prices an average of 10% and making an additional advertising expenditure of $50,000, 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 10%, the effect on net income (loss) would be $
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