Analyzing Operational Changes Operating results for department B of Delta Company during 2016 are as follows: Sales   $550,000 Cost of goods sold   378,000 Gross profit   172,000 Direct expenses   120,000 Common expenses   66,000 Total expenses   186,000 Net loss   $(14,000)   If department B could maintain the same physical volume of product sold while raising selling prices an average of 15% and making an additional advertising expenditure of $60,000, what would be the effect on the department's 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 15%, the effect on net income (loss) would be $______

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Analyzing Operational Changes
Operating results for department B of Delta Company during 2016 are as follows:

Sales   $550,000
Cost of goods sold   378,000
Gross profit   172,000
Direct expenses   120,000
Common expenses   66,000
Total expenses   186,000
Net loss   $(14,000)

 

If department B could maintain the same physical volume of product sold while raising selling prices an average of 15% and making an additional advertising expenditure of $60,000, what would be the effect on the department's 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 15%, the effect on net income (loss) would be $______

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