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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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