Question
Pong Incorporated's segmented income statement for the most recent month is given below. Total Store A Store B Sales $159,100 $65,700 $93,400 Variable expenses 59,279
Pong Incorporated's segmented income statement for the most recent month is given below.
Total Store A Store B Sales $159,100 $65,700 $93,400
Variable expenses 59,279 32,193 27,086
Contribution margin 99,821 33,507 66,314
Traceable fixed expenses 69,100 20,800 48,300
Segment margin 30,721 $12,707 $18,014
Common fixed expenses 24,800 Net operating income $ 5,921
If Store B sales increase by $47,400 with no change in fixed expenses, the overall company net operating income should:
Multiple Choice
increase by $9,480
increase by $33,654
increase by $28,914
increase by $4,740
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