Question
O'Neill, Incorporated's segmented income statement for the most recent month is given below. Total Store A Store B Sales $153,800 $63,400 $90,400 Variable expenses 58,362
O'Neill, Incorporated's segmented income statement for the most recent month is given below. Total Store A Store B Sales $153,800 $63,400 $90,400 Variable expenses 58,362 28,530 29,832 Contribution margin 95,438 34,870 60,568 Traceable fixed expenses 69,700 15,100 54,600 Segment margin 25,738 $19,770 $5,968 Common fixed expenses 16,300 Net operating income $ 9,438 The marketing department believes that a promotional campaign at Store A costing $10,500 will increase sales by $22,300. If its plan is adopted, overall company net operating income should: rev: 10_20_2014_QC_55378 decrease by $1,765 decrease by $8,095 increase by $1,765 increase by $11,800
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