O'Neill, Incorporated's income statement for the most recent month is given below. Total Store A Store B
Sales $300,000 $100,000 $200,000
Variable expenses 192,000 72,000 120,000
Contribution margin 108,000 28,000 80,000
Traceable fixed expenses 76,000 21,000 55,000
Segment margin 32,000 $ 7,000 $ 25,000
Common fixed expenses 32,000
Net Income $ 5,000
The marketing department believes that a promotional campaign at Store A costing $5,000 will increase sales by $15,000. If its plan is adopted, overall company net income should:
a) decrease by $ 3,950.
b) decrease by $ 800.
c) increase by $10,000.
d) increase by $ 4,200.