O'Neill, Incorporated's segmented income statement for the most recent month is given below. ...
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Accounting
O'Neill, Incorporated's segmented income statement for the most recent month is given below.
Total Company
Store A
Store B
Sales
$398,000
$160,000
$238,000
Variable expenses
261,980
116,800
145,180
Contribution margin
136,020
43,200
92,820
Traceable fixed expenses
82,400
25,000
57,400
Segment margin
53,620
$18,200
$35,420
Common fixed expenses
36,900
Net operating income
$16,720
For each of the following questions, refer back to the above original data. The marketing department believes that a promotional campaign at Store A costing $6,700 will increase sales by $13,400. If its plan is adopted, overall company net operating income should:
increase by $3,082
decrease by $3,082
increase by $10,318
decrease by $10,318
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