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Ring, Incorporated's income statement for the most recent month is given below. Total Store P Store Q Sales $1,176,000 $416,000 $760,000 Variable expenses 448,800 172,800

Ring, Incorporated's income statement for the most recent month is given below.

Total

Store P

Store Q

Sales

$1,176,000

$416,000

$760,000

Variable expenses

448,800

172,800

276,000

Contribution margin

727,200

243,200

484,000

Traceable fixed expenses

422,000

114,000

308,000

Segment margin

305,200

$129,200

$176,000

Common fixed expenses

37,000

Net operating income

$268,200

The marketing department believes that a promotional campaign at Store P costing $6,800 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.)

a)

decrease by $13,600
b) increase by $3,640
c)increase by $3,160
d) decrease by $3,160

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