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Pong Incorporated's income statement for the most recent month is given below. Total Store G Store H Sales $162,500 $64,400 $98,100 Variable expenses 57,122 27,692
Pong Incorporated's income statement for the most recent month is given below. |
Total | Store G | Store H | |
Sales | $162,500 | $64,400 | $98,100 |
Variable expenses | 57,122 | 27,692 | 29,430 |
Contribution margin | 105,378 | 36,708 | 68,670 |
Traceable fixed expenses | 71,300 | 20,400 | 50,900 |
Segment margin | 34,078 | $16,308 | $17,770 |
Common fixed expenses | 22,500 | ||
Net operating income | $ 11,578 | ||
The marketing department believes that a promotional campaign for Store H costing $8,500 will increase the store's sales by $18,000. If the campaign is adopted, overall company net operating income should: |
decrease by $5,400 | |
decrease by $5,940 | |
increase by $4,100 | |
increase by $9,500 |
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