WSR Inc. sells a variety of drink and food products including potato chips and sodas. The segmented income statements for these two products are as follows:

	Sodas		Chips
Sales	$800,000		$900,000
Variable expenses	200,000		315,000
Contribution margin	600,000		585,000
Traceable fixed expense	120,000		160,000
Segment margin	$480,000		$425,000

WSR's management is considering a special advertising campaign that will run during a major sporting event. The advertising campaign is expected to cost $30,000 and only one product can be featured. In-house marketing studies show that the $30,000 advertising campaign could (1) increase sales of the soda division by 25% or (2) increase the selling price of the chips division by 20%.

16. Refer to the WSR Inc. information above. What will be the overall net effect on the company's total profits if the $30,000 advertising focuses on sodas with its 25% increase in sales?

a.	Increase of $170,000
b.	Increase of $150,000
c.	Increase of $120,000
d.	Increase of $200,000

17. Refer to the WSR Inc. information above. What will be the overall net effect on the company's total profits if the $30,000 advertising focuses on chips with its 20% increase in the selling price?

a.	Increase of $170,000
b.	Increase of $150,000
c.	Increase of $120,000
d.	Increase of $200,000