Question: O'Neill, Incorporated's segmented income statement for the most recent month is given below. Total Company Store A Store B Sales $407,000 $133,000 $274,000 Variable expenses

O'Neill, Incorporated's segmented income statement for the most recent month is given below.

Total Company Store A Store B
Sales $407,000 $133,000 $274,000
Variable expenses 264,230 97,090 167,140
Contribution margin 142,770 35,910 106,860
Traceable fixed expenses 89,800 31,600 58,200
Segment margin 52,970 $4,310 $48,660
Common fixed expenses 28,350
Net operating income $24,620

For each of the following questions, refer back to the above original data. The marketing department believes that a promotional campaign at Store A costing $8,250 will increase sales by $16,500. If its plan is adopted, overall company net operating income should:

rev: 07_06_2016_QC_CS-55176

decrease by $3,795

decrease by $12,705

increase by $12,705

increase by $3,795

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