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Pong Incorporated's income statement for the most recent month is given below. Total Store G Store H Sales $162,800 $68,100 $94,700 Variable expenses 57,012 28,602
Pong Incorporated's income statement for the most recent month is given below. |
Total | Store G | Store H | |
Sales | $162,800 | $68,100 | $94,700 |
Variable expenses | 57,012 | 28,602 | 28,410 |
Contribution margin | 105,788 | 39,498 | 66,290 |
Traceable fixed expenses | 69,800 | 23,200 | 46,600 |
Segment margin | 35,988 | $16,298 | $19,690 |
Common fixed expenses | 17,600 | ||
Net operating income | $ 18,388 | ||
The marketing department believes that a promotional campaign for Store H costing $10,100 will increase the store's sales by $21,600. If the campaign is adopted, overall company net operating income should: |
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