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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 expense

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 expense 192,000 72,000 120,000

contribution margin 108,000 28,000 80,000

traceble fixed expense 76,000 21,000 55,000

segment margin 32,000 7,000 25,000

common fixed expense 27,000

noi 5,000

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 $6,000 will increase sales by $15,000. If its plan is adopted, overall company net operating income should:

a) decrease by $1,800

b) decrease by $10,200

c) increase by $10,200

d) increase by $1,800

show all work, no calculator allowed

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