(35-36) Nelson Inc.\'s income statement for the most recent month is given below

Question

(35-36) Nelson Inc.'s income statement for the most recent month is given below.

35.If Store G sales increase by $40,000 with no change in fixed costs, the overall company net operating income should: State the direction and amount of the change.

36.The marketing department believes that a promotional campaign for Store H costing $8,000 will increase the store's sales by $15,000. If the campaign is adopted, overall company net operating income should:State the direction and amount of the change.

Explanation / Answer

1. increase by $15,000 2. increase by $ 6,500

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