Azuki Corporation Operates in Two Sales Territories, Urban and Rural

question 251

Multiple Choice

Azuki Corporation operates in two sales territories, Urban and Rural. Data concerning last year's operations appear below: Azuki'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 Azuki Corporation as a whole?

• A) $5,000 increase
• B) $6,000 increase
• C) $11,000 increase
• D) $24,000 decrease

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Definitions:

Hydrophobic

Characteristic of molecules that repel water or do not mix well with water, often due to nonpolar properties.

Alkanes

Hydrocarbons consisting solely of hydrogen and carbon atoms arranged in straight or branched chains without any double or triple bonds.

Cis/trans Designation

A way to distinguish isomers by the relative positioning of functional groups within a molecule; cis means on the same side and trans means on opposite sides.

Compound

A substance formed by the chemical combination of two or more elements in a fixed ratio.