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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 $387,000 $162,000 $225,000 Variable expenses
O'Neill, Incorporated's segmented income statement for the most recent month is given below.
Total Company | Store A | Store B | |
Sales | $387,000 | $162,000 | $225,000 |
Variable expenses | 255,510 | 118,260 | 137,250 |
Contribution margin | 131,490 | 43,740 | 87,750 |
Traceable fixed expenses | 85,400 | 26,000 | 59,400 |
Segment margin | 46,090 | $17,740 | $28,350 |
Common fixed expenses | 30,000 | ||
Net operating income | $16,090 | ||
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 $9,700 will increase sales by $29,100. If its plan is adopted, overall company net operating income should:
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