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Nantor Corporation Has Two Divisions, Southern and Northern

question 42

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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: Nantor Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division:   Net operating income last year for Nantor Corporation was $800,000. If the Northern Division's sales last year were $600,000 higher, how would this have changed Nantor's net operating income? (Assume no change in selling prices, variable expenses per unit, or fixed expenses.)  A)  $240,000 increase B)  $60,000 increase C)  $160,000 increase D)  $1,200,000 increase Net operating income last year for Nantor Corporation was $800,000.
If the Northern Division's sales last year were $600,000 higher, how would this have changed Nantor's net operating income? (Assume no change in selling prices, variable expenses per unit, or fixed expenses.)


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