XYZ Company has 2 profit centers. Profit Center A sells Product A and Profit Center B...

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XYZ Company has 2 profit centers. Profit Center A sells Product A and Profit Center B sells Product B. The segmented income statements for these two products are as follows: Controllable Revenue Variable Controllable Costs Contribution margin Fixed Controllable Costs Controllable Income Product A Product B $1,000,000 $900,000 200,000 300,000 800,000 600,000 620,000 460,000 $180,000 $140,000 XYZ's management is considering a special advertising campaign. The advertising campa is expected to cost $100,000 and only one product can be featured. A marketing study shows that the $100,000 advertising campaign could (1) increase the sales of Product A by 30% or (2) increase the selling price of Product B by 30%. 24. What will be the overall net effect on the company's net income if the $100,000 advertising focuses on Profit Center A's Product A with its 30% increase in sales? a. Increase of $170,000 b. Increase of $160,000 c. Increase of $150,000 d. Increase of $140,000 XYZ Company has 2 profit centers. Profit Center A sells Product A and Profit Center B sells Product B. The segmented income statements for these two products are as follows: Controllable Revenue Variable Controllable Costs Contribution margin Fixed Controllable Costs Controllable Income Product A Product B $1,000,000 $900,000 200,000 300,000 800,000 600,000 620,000 460,000 $180,000 $140,000 XYZ's management is considering a special advertising campaign. The advertising campa is expected to cost $100,000 and only one product can be featured. A marketing study shows that the $100,000 advertising campaign could (1) increase the sales of Product A by 30% or (2) increase the selling price of Product B by 30%. 24. What will be the overall net effect on the company's net income if the $100,000 advertising focuses on Profit Center A's Product A with its 30% increase in sales? a. Increase of $170,000 b. Increase of $160,000 c. Increase of $150,000 d. Increase of $140,000