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O'Neill, Incorporated's income statement for the most recent month is given below: Total Store A Store B Sales 300,000 100,000 200,000 Variable Expenses 192,000 72,000
O'Neill, Incorporated's income statement for the most recent month is given below:
Total | Store A | Store B | |
Sales | 300,000 | 100,000 | 200,000 |
Variable Expenses | 192,000 | 72,000 | 120,000 |
Contribution Margin | 108,000 | 28,000 | 80,000 |
Traceable fixed expenses | 76,000 | 21,000 | 55,000 |
Segment margin | 32,000 | 7,000 | 25,000 |
Common fixed expenses | 27,000 | ||
Net operating income | 5,000 | ||
A) If Store B sales increase by $20,000 with no chane in traceable fixed expenses, the overall company net opering income should:
B) The marking department believes that a promotional campaign at Store A costing $5,000 will increase sales by $15,000. If its plain is adopted, overal company net operating income should:
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