Question
Ring, Incorporated's income statement for the most recent month is given below. Total Store P Store Q Sales $1,080,000 $380,000 $700,000 Variable expenses 438,000 168,000
Ring, Incorporated's income statement for the most recent month is given below. Total Store P Store Q Sales $1,080,000 $380,000 $700,000 Variable expenses 438,000 168,000 270,000 Contribution margin 642,000 212,000 430,000 Traceable fixed expenses 377,000 102,000 275,000 Segment margin 265,000 $110,000 $155,000 Common fixed expenses 37,000 Net operating income $228,000 The marketing department believes that a promotional campaign at Store P costing $6,500 will increase sales by $18,000. If the campaign is adopted, overall company net operating income should: (Round your intermediate calculations to two decimal places.) decrease by $13,000 increase by $3,580 increase by $2,920 decrease by $2,920
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