Nantua Corporation Has Two Divisions, Southern and Northern

question 3

Multiple Choice

Nantua 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 Nantua Corporation was $400, 000. If the Northern Division's sales last year were $300, 000 higher, how would this have changed Nantua's net operating income? (Assume no change in selling prices, variable expenses per unit, or fixed expenses. )

• A)$30, 000 increase
• B)$80, 000 increase
• C)$120, 000 increase
• D)$300, 000 increase

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Theorized Relationship

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