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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 192 000 272.000 120.000 Contribution margin 108,000 28,000 80,000 Traceable foced 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 sales in Store B increase by $30,000 as a result of a $5,000 increase in traceable fxed expenses: the contribution margin should increase by $18,000 the contribution margin should increase by $12,000 the segment margin should increase by $17.000 the segment margin should increase by $7,000
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