Shown below is the current monthly income statement of Metro Video, by profit centers: Metro Video Responsibility Accounting Income Statement For the Month of April Entire Company Segments Equipment Sales Sales Variable costs Contribution margin Video Rentals $560,000 $ 280,000 $280,000 268,800 198,800 $291,200 $ 81,200 Fixed costs traceable to departments 67,200 25,200 70,000 $210,000 42,000 Department responsibility margin $224,000 $ 56,000 $168,000 Common fixed costs 61,600 Operating income $ 162,400 The contribution margin ratios are as follows: entire company 52%, equipment sales 29%, and video rentals 75%. Required: On the basis of this information, compute the increase (or decrease) in monthly income from operations that may be expected to result from each of the following actions: (A) Spending $5,000 per month in advertising is expected to increase sales in the Equipment Sales Department by 35%. (B) Closing the Equipment Sales Department and allowing the Video Rentals Department to expand is expected to increase the revenue of the Video Rentals Department by $105,000 per month. This action also is expected to increase fixed costs traceable to the Video Rentals Department by $40,000 per month.