Pong incorporate\'s icome statement for the most recent month is given below: th
ID: 2496896 • Letter: P
Question
Pong incorporate's icome statement for the most recent month is given below:
the marketing department believes that a promotional campaign for store H costing $8000 wil increase the store's sales by $15000.if the campaign is adopted, overall company net operationg income should:
answer) increase by $2000
i want to know way to solve too.
total storeG Store H sales 150000 60000 90000 variable expense 60000 30000 30000 contribution margin 90000 30000 60000 traceable fixed expenss 60000 15000 45000 segment margin 30000 15000 15000 common fixed expnses 15000 net operationg income 15000Explanation / Answer
Net Operating Income increase by $ 2000.
Store G Store H Addl Exp Total Sales 60000 90000 15000 165000 variable Exp 30000 30000 8000 68000 Contribution 30000 60000 7000 97000 Tracebale fixed exp 15000 45000 5000 65000 Segement Margin 15000 15000 2000 32000 Common fixed exp 15000 Net operating income 17000