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Analyzing Operational Changes Operating results for department B of Shaw Company during 2016 are as follows: Sales 5795.000 Cost of goods sold 480.000 Gross profit
Analyzing Operational Changes Operating results for department B of Shaw Company during 2016 are as follows: Sales 5795.000 Cost of goods sold 480.000 Gross profit 315,000 Direct expenses 215,000 Common expenses 123.000 Total expenses 338.000 Net loss 5123,000) 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 $55,000, 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 increased its selling price by 10%, the effect on net income (loss) would be $ 1.500
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