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

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Accounting

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

Total Company Store A Store B
Sales $398,000 $160,000 $238,000
Variable expenses 261,980 116,800 145,180
Contribution margin 136,020 43,200 92,820
Traceable fixed expenses 82,400 25,000 57,400
Segment margin 53,620 $18,200 $35,420
Common fixed expenses 36,900
Net operating income $16,720

For each of the following questions, refer back to the above original data. The marketing department believes that a promotional campaign at Store A costing $6,700 will increase sales by $13,400. If its plan is adopted, overall company net operating income should:

increase by $3,082

decrease by $3,082

increase by $10,318

decrease by $10,318

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