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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 $390,000 $153,000 $237,000 Variable expenses

O'Neill, Incorporated's segmented income statement for the most recent month is given below.

Total Company Store A Store B
Sales $390,000 $153,000 $237,000
Variable expenses 260,160 113,220 146,940
Contribution margin 129,840 39,780 90,060
Traceable fixed expenses 95,600 25,600 70,000
Segment margin 34,240 $14,180 $20,060
Common fixed expenses 29,700
Net operating income $4,540

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 $6,350 will increase sales by $19,050. If its plan is adopted, overall company net operating income should:

rev: 07_06_2016_QC_CS-55176

increase by $11,303

decrease by $1,397

decrease by $11,303

increase by $1,397

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