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GM operates in two sales territories, Urban and Rural. Data concerning last year's operations appear below: Urban Rural Sales $ 320,000 $ 80,000 Variable expenses

GM operates in two sales territories, Urban and Rural. Data concerning last year's 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

)

GM's common fixed expenses were $25,000 last year. If operations in the Rural Sales Territory would have been discontinued at the beginning of last year, how would this have changed the net operating income of GM as a whole?

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