Nantor Corporation Has Two Divisions, Southern and Northern

question 337

Multiple Choice

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

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