Analyzing Operational Changes
Operating results for department B of Shaw Company during 2016 are as follows:

Sales $790,000
Cost of goods sold 480,000
Gross profit 310,000
Direct expenses 215,000
Common expenses 123,000
Total expenses 338,000
Net loss $(28,000)
a. If department B could maintain the same physical volume of product sold while raising selling prices an average of 10% and making an additional advertising expenditure of $53,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.)

Use a negative sign with your answer to indicate if the effect increases the company's net loss.

b. If Department B increased its selling price by 10%, the effect on net income (loss) would be $