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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 Store B sales increase by $20,000 with no change in fixed expenses, the overall company net operating income should:

increase by $2,500

increase by $5,000

increase by $8,000

increase by $12,000

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