Question
O'Neill, Incorporated's segmented income statement for the most recent month is given below. Total CompanyStore AStore BSales$407,000$133,000$274,000Variable expenses264,23097,090167,140Contribution margin142,77035,910106,860Traceable fixed expenses89,80031,60058,200Segment margin52,970$4,310$48,660Common fixed expenses28,350Net operating
O'Neill, Incorporated's segmented income statement for the most recent month is given below.
Total CompanyStore AStore BSales$407,000$133,000$274,000Variable expenses264,23097,090167,140Contribution margin142,77035,910106,860Traceable fixed expenses89,80031,60058,200Segment margin52,970$4,310$48,660Common fixed expenses28,350Net operating income$24,620
For each of the following questions, refer back to the above original data.
If Store B sales increase by $28,600 with no change in fixed expenses, the overall company net operating income should:
increase by $3,289
increase by $6,578
increase by $11,154
increase by $17,446
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