Azuki Corporation Operates in Two Sales Territories, Urban and Rural

question 135

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:

Combining Form

A word element used in linguistic composition, primarily in medical terminology, to combine with another form to create a word with a new meaning.

X-ray

A form of electromagnetic radiation that is used to create images of the interior of the body, often for diagnostic purposes.

Greenstick Fracture

A type of bone fracture in children, where the bone bends and partially breaks, reminiscent of how a greenwood branch breaks.

Children

Young human beings below the age of puberty or below the legal age of majority.