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Pong Incorporated's segmented income statement for the most recent month is given below. Total Store A Store B Sales $157,500 $61,000 $96,500 Variable expenses 53,760
Pong Incorporated's segmented income statement for the most recent month is given below.
Total | Store A | Store B | |
Sales | $157,500 | $61,000 | $96,500 |
Variable expenses | 53,760 | 28,670 | 25,090 |
Contribution margin | 103,740 | 32,330 | 71,410 |
Traceable fixed expenses | 69,100 | 19,900 | 49,200 |
Segment margin | 34,640 | $12,430 | $22,210 |
Common fixed expenses | 20,400 | ||
Net operating income | $ 14,240 | ||
If Store B sales increase by $43,000 with no change in fixed expenses, the overall company net operating income should: |
increase by $4,300
increase by $27,090
increase by $31,820
increase by $8,600
Please Explain
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