View the step-by-step solution to:

# Question 18: (1 point) O'Neill, Incorporated's income statement for the most recent month is given below.

Question 18: (1 point)
O'Neill, Incorporated's income statement for the most recent month is given below.
Total Store A Store B
Sales   \$540,000 \$160,000 \$380,000
Variable expenses   352,800 94,400 258,400
Contribution margin   187,200 65,600 121,600
Traceable fixed expenses     75,000    20,000    55,000
Segment margin   112,200 \$ 45,600 \$ 66,600
Common fixed expenses      27,000
Net operating income   \$ 85,200
The marketing department believes that a promotional campaign at Store A costing \$3,000 will increase sales by \$16,000. If its plan is adopted, overall company net operating income should:
increase by \$3,560
increase by \$3,710
decrease by \$3,835
decrease by \$3,770

Question 18: (1 point)
O'Neill, Incorporated's income statement for the most recent month is
given below.
Â
Total
Store A
Store B
SalesÂ Â Â
\$540,000
\$160,000
\$380,000
Variable expensesÂ Â Â
352,800
94,400
258,400
Contribution marginÂ Â Â
187,200
65,600
121,600
Traceable fixed expensesÂ Â Â
Â Â 75,000
Â Â Â 20,000
Â Â Â 55,000
Segment marginÂ Â Â
112,200
\$ 45,600
\$ 66,600
Common fixed expensesÂ Â Â
Â Â Â 27,000
Â
Â
Net operating incomeÂ Â Â
\$ 85,200
Â
Â
The marketing department believes that a promotional campaign at Store A
costing \$3,000 will increase sales by \$16,000. If its plan is adopted,
overall company net operating income should:
increase by \$3,560
increase by \$3,710
decrease by \$3,835
decrease by \$3,770

## This question was asked on May 07, 2010.

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors and customizable flashcards—available anywhere, anytime.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access or to earn money with our Marketplace.

Browse Documents