why is advertising not included on problem #22

Use the following information for the next two questions: The most recent income statement for Department A of Bear Pit's Department Store franchise is as follows: said kev -VC connon F Sales $500.000 Less Variable Expenses 200.000 Contribution Margin 300.000 Less Fixed Expenses 1 Salaries and Wages FC150,000 (120,00) Depreciation of Equipment FC (65,000 General Administrative Overhead 35,000 t Advertising 75.000 Total Fixed Expenses 325.000 Operating Income ($25,000) 40 000 The department's equipment has a remaining useful life of six years, with little or no current resale value. Management is thinking about closing the department due to its poor showing. If the department is closed, one employee with a salary of $30.000 will be retained. The equipment has no resale value. CM -FC NOI cart 35.000 0 22. How would the franchise's income be affected if the department is closed? A) $105.000 increase 200,000 B) $75,000 decrease 90,00 120,000 $105.000 decrease. 05000 25,000 D) $40,000 decrease 105ou 80,000 23. What is the segment margin of the department, which is a more useful format for pranagement in assessing the long-run financial viability of the franchise? $10.000 500, ovv B) $75,000 20080 C) ($60,000) 300 Noo D) ($125,000) -TI Divel 150,000 fal + wager 45,00 Dep on equit 35000 adv. Tojodo any