A corporation operates in two sales territories , North and South. Data concerning last years operations appear below : Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin North $ 360,000 270,000 90,000 42,000 $ 48,000 South $ 76,000 46,000 30,000 35,000 $ ( 5,000 ) The companys common fixed expenses were $ 20,000 last year . Wh operations in the South Sales Territory would have been discontinued at the beginning of last year , how would this have the net operating income of the corporation as a whole ? increase

A corporation operates in two sales territories, North and South. Data concerning last year's operations appear below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin North $360,000 270,000 90,000 42,000 $ 48,000 South $ 76,000 46,000 30,000 35,000 $ (5,000) The company's common fixed expenses were $20,000 last year. operations in the South Sales Territory would have been discontinued at the beginning of last year, how would this have hanged the net operating income of the corporation as a whole? $43,000 increase $5,000 decrease 55,000 increase 3,000 increase