E8-2A

E8-2A. Analyzing Operational Changes Operating results for department B of Delta Company during 2016 are as follows: Sales. Cost of good $540,000 378,000 $162,000 66,000 $186,000 $(24,000) Common expenses .. . Net loss . .. . 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 $45,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.)