In this question and answer to a previously asked question, can you please explain in DETAIL where this line comes from:

Net profit for the total company = $(50,000) + $32,500

where does the (50,000) come from!! Please explain

Question 13 4 pts Kristina Food Pty Ltd operates a food business with two divisions; there is a restaurant and a catering service. A segmented profit and loss statement for the company's most recent year is as follows: Total company Restaurant Catering Sales Less: Variable expenses Contribution margin Less: Traceable fixed costs Division segment margin Less common fixed costs Net profit $500,000 $275,000 $225,000 $145,000 $80,000 $130,000 -$50,000 $375,000 $187,500 $187,500 $45,000 $142,500 $125,000 $87,500 $37,500 $100,000 -$62,500 Required: a) If the restaurant division increased its sales by $65,000, calculate the division segment margin for the Restaurant division, and net profit for the total company. Assume that all fixed costs and cost behaviour patterns remained constant. (1 mark) Mounika answered this 9,929 answers Was this answer Contribution margin ratio = Contribution margin / Sales * 100 * = Restaurant contribution margin ratio = $187,500 / $375,000 * 100 = = 50% Contribution margin on increased sales = $65,000 * 50% = = $32,500 Sales increases division segment margin by the increase in contribution margin. Division segment margin = $142,500 + $32,500 = $175,000 Net profit of total company increases by the increase in contribution margin. Net profit for the total company = $(50,000) + $32,500 = = = $(17,500)