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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 $407,000 $133,000 $274,000 Variable expenses
O'Neill, Incorporated's segmented income statement for the most recent month is given below.
Total Company | Store A | Store B | |
Sales | $407,000 | $133,000 | $274,000 |
Variable expenses | 264,230 | 97,090 | 167,140 |
Contribution margin | 142,770 | 35,910 | 106,860 |
Traceable fixed expenses | 89,800 | 31,600 | 58,200 |
Segment margin | 52,970 | $4,310 | $48,660 |
Common fixed expenses | 28,350 | ||
Net operating income | $24,620 | ||
For each of the following questions, refer back to the above original data. The marketing department believes that a promotional campaign at Store A costing $8,250 will increase sales by $16,500. If its plan is adopted, overall company net operating income should:
rev: 07_06_2016_QC_CS-55176
decrease by $3,795
decrease by $12,705
increase by $12,705
increase by $3,795
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