Question: Please also show me the calculating process of the answer. Thank you! Analyzing Operational Changes Operating results for department B of Delta Company during 2016
Analyzing Operational Changes Operating results for department B of Delta Company during 2016 are as follows: $540,000 Cost of goods sold 378,000 162,000 120,000 Common expenses 66,000 186,000 $(24,000) Sales Gross profit Direct expenses Total expenses Net loss suppose that department B could increase physical v lume of product sold by 10% if it spent an additional $18,000 on advertising while leaving selling prices unchanged. What effect would this have on the department's net income or net loss? (gnore income tax in your calculations.) Use a negative sign to indicate a net loss answer: otherwise do not use negative signs with your answers. Sales Cost of goods sold 378 Gross profit Direct expenses Common expenses Total expenses s 594,000 000X 216,000 120,000 X 66,000 186,000 x
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