Operating results for department B of Shaw Company during 2016 are as follows: Sales   $755,000 Cost of goods sold   480,000 Gross profit   275,000 Direct expenses   215,000 Common expenses   123,000 Total expenses   338,000 Net loss   $(63,000)   If department B could maintain the same physical volume of product sold while raising selling prices an average of 10% and making an additional advertising expenditure of $35,000, 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 10%, the effect on net income (loss) would be $Answer

Analyzing Operational ChangesOperating results for department B of Delta Company during 2016 are as follows: Sales   $530,000 Cost of goods sold   378,000 Gross profit   152,000 Direct expenses   120,000 Common expenses   66,000 Total expenses   186,000 Net loss   $(34,000)   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 $40,000, 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 $Answer.

Analyzing Operational ChangesOperating results for department B of Delta Company during 2016 are as follows: Sales   $538,000 Cost of goods sold   378,000 Gross profit   160,000 Direct expenses   120,000 Common expenses   66,000 Total expenses   186,000 Net loss   $(26,000)   Suppose that department B could increase physical volume of product sold by 10% if it spent an additional $17,000 on advertising while leaving selling prices unchanged. What effect would this have on the department's net income or net loss? (Ignore income tax in your calculations.) Use a negative sign to indicate a net loss answer; otherwise do not use negative signs with your answers. Sales   Answer Cost of goods sold   Answer Gross profit   Answer Direct expenses   Answer Common expenses   Answer Total expenses   Answer Net income (loss)   Answer

Analyzing Operational Changes Operating results for department B of Shaw Company during 2016 are as follows: Sales Cost of goods sold Gross profit Direct expenses Common expenses Total expenses Net loss $770,000 480,000 290,000 215,000 123,000 338,000 $(48.000) If department B could maintain the same physical volume of product sold while raising selling prices an average of 10% and making an additional advertising expenditure of $40,000, 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 10%, the effect on net income (loss) would be $