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O'Neill, Incorporated's segmented income statement for the most recent month is given below. Total Company Store A Store B Sales $300,000 $100,000 $200,000 Variable expenses

O'Neill, Incorporated's segmented income statement for the most recent month is given below.

Total Company 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

For each of the following questions, refer back to the above original data. If sales in Store B increase by $30,000 as a result of a $5,000 increase in traceable fixed expenses:

the contribution margin should increase by $18,000

the segment margin should increase by $17,000

the contribution margin should increase by $12,000

the segment margin should increase by $7,000

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