E8-1A. Analyzing Operational Changes Annual operating results for department B of Delta Company are LO1 as follows: -27 Chapter 8 Relevant Costs and Short-Term Decision-Making Sales. Cost of goods sold Gross profit. Direct expenses Common expenses. Total expenses Net loss. Cambridge Business Publishers $540,000 378,000 $162,000 $120,000 66,000 $186,000 $ (24,000) If department B could maintain the same physical volume of product sold while raising selling prices an average of 5% and making an additional advertising expenditure of $30,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.)