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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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