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O\'Neill, Incorporated\'s segmented income statement for the most recent month i

ID: 2485819 • Letter: O

Question

O'Neill, Incorporated's segmented income statement for the most recent month is given below. Total Store A Store B Sales $159,100 $65,700 $93,400 Variable expenses 59,279 32,193 27,086 Contribution margin 99,821 33,507 66,314 Traceable fixed expenses 69,100 20,800 48,300 Segment margin 30,721 $12,707 $18,014 Common fixed expenses 24,800 Net operating income $ 5,921 If Store B salesincrease by $47,400 with no change in fixed expenses, the overall company net operating income should:

increase by $28,914

increase by $9,480

increase by $4,740

increase by $33,654

Explanation / Answer

total store A store B sales 206500 65700 140800 variable expenses 73025 32193 40832 contribution 133475 33507 99968 fixed cost 69100 20800 48300 segment margin 64375 12707 51668 common fixed cost 24800 39575 net income increase by 33654 option d