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Nantor Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Total Company Southern Northern
Nantor Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division:
Total Company | Southern | Northern | |||||||
Sales | $ | 8,000,000 | $ | 5,000,000 | $ | 3,000,000 | |||
Contribution margin | $ | 3,300,000 | $ | 2,100,000 | $ | 1,200,000 | |||
Divisional segment margin | $ | 1,700,000 | $ | 1,400,000 | $ | 600,000 | |||
Net operating income last year for Nantua Corporation was $800,000.
If the Northern Division's sales last year were $600,000 higher, how would this have changed Nantua's net operating income? (Assume no change in selling prices, variable expenses per unit, or fixed expenses.)
$240,000 increase | ||
$60,000 increase | ||
$160,000 increase | ||
$1,200,000 increase |
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