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Pong Incorporated's segmented income statement for the most recent month is given below. Total Store A Store B Sales $153,600 $60,200 $93,400 Variable expenses 59,054
Pong Incorporated's segmented income statement for the most recent month is given below. |
Total | Store A | Store B | |
Sales | $153,600 | $60,200 | $93,400 |
Variable expenses | 59,054 | 30,100 | 28,954 |
Contribution margin | 94,546 | 30,100 | 64,446 |
Traceable fixed expenses | 69,200 | 21,000 | 48,200 |
Segment margin | 25,346 | $9,100 | $16,246 |
Common fixed expenses | 23,300 | ||
Net operating income | $ 2,046 | ||
The marketing department believes that a promotional campaign for Store A costing $7,500 will increase sales by $16,400. If its plan is adopted, overall company net operating income should: |
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