Azuki Corporation Operates in Two Sales Territories, Urban and Rural

question 137

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 Urban sales were 10% higher last year, by approximately how much would Azuki's net operating income have increased? (Assume no change in selling prices, unit variable expenses, or total fixed expenses.)

• A) $4,400
• B) $6,400
• C) $11,200
• D) $32,000

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Definitions:

Fontanelles

Soft spots on a baby's skull where the bones have not yet fused together, allowing for growth of the brain.

Cone-Shaped

Refers to objects having a shape or form that tapers from a broad base to a point, similar to a cone.

Fontanelles

Soft spots on a baby's skull where the bones have not yet fused together, allowing for growth of the brain and skull.

First-Born

Refers to the child born first to a set of parents, leading to unique developmental and familial impacts.