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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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