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Sales Variable expenses...... Contribution margin .... Traceable fixed expenses.... Segment margin... Common Fixed expenses ........ Net operating income .... Total $150,000 60,000 90,000 60,000 30,000

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Sales Variable expenses...... Contribution margin .... Traceable fixed expenses.... Segment margin... Common Fixed expenses ........ Net operating income .... Total $150,000 60,000 90,000 60,000 30,000 15,000 $ 15,000 Store G $60,000 30,000 30,000 15,000 $15,000 Store H $90,000 30,000 60,000 45,000 $15,000 Pong Incorporated's income statement for the most recent month is given below. The marketing department believes that a promotional campaign for Store H costing $8,000 will increase the store's sales by $15,000. If the campaign is adopted, overall company net operating income should: decrease by $5,000 decrease by $5,500 increase by $2,000 increase by $7,000

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