Analyzing Operational Changes Annual operating results for department B of Delta Company are as follows:...
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Analyzing Operational Changes Annual operating results for department B of Delta Company are as follows: Sales $540,000 Cost of goods sold 378,000 Gross profit 162,000 Direct expenses 120,000 Common expenses 66,000 Total expenses 186,000 Net loss $(24,000) If department B could maintain the same physical volume of product sold while raising selling prices an average of 5% and making an additional advertising expenditure of $30,000, what would be the effect on the departments net income or net loss? (Ignore income tax in your calculations.) Use a negative sign with your answer to indicate if the effect increases the company's net loss. If Department B increased its selling price by 5%, the effect on net income (loss) would be $
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