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The marketing department believes that a promotional

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Pong Incorporated's income statement for the most recent month is given below.


  Total   Store G   Store H
  Sales $162,500 $64,400 $98,100
  Variable expenses 57,122 27,692 29,430




  Contribution margin 105,378 36,708 68,670
  Traceable fixed expenses 71,300 20,400 50,900




  Segment margin 34,078 $16,308 $17,770
  Common fixed expenses 22,500





  Net operating income $ 11,578





The marketing department believes that a promotional campaign for Store H costing $8,500 will increase the store's sales by $18,000. If the campaign is adopted, overall company net operating income should:

Reference no: EM13585867

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