Question
Azuki Corporation operates in two sales territories, Urban and Rural Data concerning last year's operations appear below. Sales Variable expenses Contribution margin Traceable fixed expenses
Azuki Corporation operates in two sales territories, Urban and Rural Data concerning last year's operations appear below. Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Urban $ 320,000 Rural $ 80,000 208,000 112,000 56,000 24,000 48,000 30,000 $ 64,000 $ (6,000) Azuki's common fixed expenses were $25,000 last year. If Urban sales were 10% higher last year, by approximately how much would Azuk's net operating income have increased? (Assume no change in selling prices, unit variable expenses, or total fored expenses.) Multiple Choice $11,200 $32.000 If Urban sales were 10% higher last year, by approximately how much would Azuki's net operating income have increased? (Assume no change in selling prices, unit variable expenses, or total fixed expenses.) Multiple Choice $11,200 $32.000 $6,400 $4,400
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