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.)

Question

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.)

Quizplus · Accepted Answer

The Answer of 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.)

Nantua Corporation Has Two Divisions, Southern and Northern