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Analyzing Operational Changes Operating results for department B of Delta Company during 2019 are as follows: Sales Cost of goods sold Gross profit Direct expenses
Analyzing Operational Changes Operating results for department B of Delta Company during 2019 are as follows: Sales Cost of goods sold Gross profit Direct expenses Common expenses $540,000 378,000 162,000 120,000 66,000 186,000 $(24,000) Total expenses Net loss Suppose that department B could increase physical volume of product sold by 10% if it spent an additional $40,000 on advertising while leaving selling prices unchanged. What effect would this have on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign to indicate a net loss answer; otherwise do not use negative signs with your answers. $ 594,000 415,800 178,200 Sales Cost of goods sold Gross profit Direct expenses Common expenses Total expenses Net income (loss) 66,000 $
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