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Ring, Incorporated's income statement for the most recent month is given below. Total Store P Store Q Sales $1,208,000 $428,000 $780,000 Variable expenses 452,400 174,400
Ring, Incorporated's income statement for the most recent month is given below. |
Total | Store P | Store Q | |
Sales | $1,208,000 | $428,000 | $780,000 |
Variable expenses | 452,400 | 174,400 | 278,000 |
Contribution margin | 755,600 | 253,600 | 502,000 |
Traceable fixed expenses | 437,000 | 118,000 | 319,000 |
Segment margin | 318,600 | $135,600 | $183,000 |
Common fixed expenses | 37,000 | ||
Net operating income | $281,600 |
The marketing department believes that a promotional campaign at Store P costing $6,900 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.)
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