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: