21-1B

line Operational Changes Operating results for department IB. Analyzing 2019 are as follows: of Shaw Company during Sales... Cost of goods sold.. Gross profit Direct expenses Common expenses... Total expenses. Net loss... $800,000 480,000 $320,000 $200,000 123,000 $323.000 $ (3,000) 27 If department B could maintain the same physical volume of product sold while raising selling prices an average of 6% 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.)