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Azuki Corporation operates in two sales territories, Urban and Rural. Data concerning last years operations appear below: Urban Rural Sales $ 320,000 $ 80,000 Variable

Azuki Corporation operates in two sales territories, Urban and Rural. Data concerning last years operations appear below:

Urban Rural
Sales $ 320,000 $ 80,000
Variable expenses 208,000 56,000
Contribution margin 112,000 24,000
Traceable fixed expenses 48,000 30,000
Segment margin $ 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 Azuki's net operating income have increased? (Assume no change in selling prices, unit variable expenses, or total fixed expenses.)

$11,200

$32,000

$4,400

$6,400

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