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Pong Incorporated's segmented income statement for the most recent month is given below. Total Store A Store B Sales $158,300 $63,100 $95,200 Variable expenses 53,767
Pong Incorporated's segmented income statement for the most recent month is given below. |
Total | Store A | Store B | |
Sales | $158,300 | $63,100 | $95,200 |
Variable expenses | 53,767 | 30,919 | 22,848 |
Contribution margin | 104,533 | 32,181 | 72,352 |
Traceable fixed expenses | 68,400 | 17,000 | 51,400 |
Segment margin | 36,133 | $15,181 | $20,952 |
Common fixed expenses | 22,100 | ||
Net operating income | $ 14,033 | ||
The marketing department believes that a promotional campaign for Store A costing $8,700 will increase sales by $18,200. If its plan is adopted, overall company net operating income should:
decrease by $582 decrease by $4,805 increase by $582 increase by $9,500 select the correct answer. |
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