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Lucas 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
Lucas 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 $ 320,000 208,000 112,000 48,000 $ 64,000 South $ 82,000 56,000 26,000 30,000 $ (4,000) Lucas' common fixed expenses were $25,000 last year. If operations in the SouthTerritory would have been discontinued at the beginning of last year, how would this have changed the net operating income of Lucas Corporation as a whole? NOI would increase O NOI would remain unchanged O NOI would decrease
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