What effect would this have on the department net income

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Question - Analyzing Operational Changes - Operating results for department B of Delta Company during 2016 are as follows:

Sales $536,000

Cost of goods sold 378,000

Gross profit 158,000

Direct expenses 120,000

Common expenses 66,000

Total expenses 186,000

Net loss $(28,000)

Suppose that department B could increase physical volume of product sold by 10% if it spent an additional $19,000 on advertising while leaving selling prices unchanged. What effect would this have on the department's net income or net loss?

Reference no: EM133066112

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