E8-2B Analyzing Operational Changes

E8-1B. Analyzing Operational Changes Annual operating results for department B of Shaw Company are as follows: 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.) E8-2B. Analyzing Operational Changes Suppose that department B in Exercise E8-1B could increase physical volume of product sold by 10% if it spent an additional $50,000 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.)