Chips Sodas $900,000 $800,000 Sales 315,000 200.000 Variable expenses 600,000 585,000 Contribution margin 120,000 160,000 Traceable fixed expense $480,000 $425.000 Segment margin WSR's management is considering a special advertising campaign that will run during a major sporting event. The advertising campaign is expected to cost $30,000 and only one product can be featured. In-house marketing studies show that the $30,000 advertising campaign could (1) increase sales of the soda division by 25% or (2) increase the selling price of the chips division by 20%. 16. Refer to the WSR Inc. information above. What will be the overall net effect on the company's total profits if the $30,000 advertising focuses on sodas with its 25% increase in sales? a. Increase of $170,000 b. Increase of $150,000 c. Increase of $120,000 d. Increase of $200,000 17. Refer to the WSR Inc. information above. What will be the overall net effect on the company's total profits if the $30,000 advertising focuses on chips with its 20% increase in the selling price? a. Increase of $170,000 b. Increase of $150,000 c. Increase of $120,000 d. Increase of $200,000 6