1. The following ledger balances for the year's end, June 30, 2016, is given. The company
sold a production unit during the year. All data are before income tax rate of 40%
Loss from operations of unit.
Cost of Goods Sold
Sales returns
Sales revenue ...
Administrative exp.
Gain on sale of property
Common stock, $10 par value
20,000
300,000
5,000
600,000
125.000
10,000
600,000
Gain on sale of unit
Interest expense
Dividend income
Selling expenses
500,000
18.000
25,000
87,000

Analyzing operational changes operating results for department b of delta company during 2016 are as follows: sales $540,000 cost of goods sold 378,000 gross profit 162,000 direct expenses 120,000 common expenses 66,000 total expenses 186,000 net loss $(24,000) suppose that department b could increase physical volume 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? (ignore 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 $answer cost of goods sold answer gross profit answer direct expenses answer common expenses answer total expenses answer net income (loss) $answer