Company net operating income should

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Reference no: EM131092653

O'Neill, Incorporated's segmented income statement for the most recent month is given below.

 

  Total

    Store A

   Store B

  Sales

$161,000

$69,300

$91,700

  Variable expenses

61,467

33,957

27,510

       

  Contribution margin

99,533

35,343

64,190

  Traceable fixed expenses

71,300

19,500

51,800

       

  Segment margin

28,233

$15,843

$12,390

  Common fixed expenses

24,000

   
       

  Net operating income

$ 4,233

   
       

 

The marketing department believes that a promotional campaign at Store A costing $9,300 will increase sales by $21,300. If its plan is adopted, overall company net operating income should:

increae/decrease by how much?

Reference no: EM131092653

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