Nantor corporation has two divisions, southern and northern. the following information was taken from last year's income statement segmented by division:
total company southern northern
sales $ 8,000,000 $ 5,000,000 $ 3,000,000
contribution margin $ 3,300,000 $ 2,100,000 $ 1,200,000
divisional segment margin $ 1,700,000 $ 1,400,000 $ 600,000
net operating income last year for nantua corporation was $800,000.
if the northern division's sales last year were $600,000 higher, how would this have changed nantua's net operating income? (assume no change in selling prices, variable expenses per unit, or fixed expenses.)
$240,000 increase
$60,000 increase
$160,000 increase
$1,200,000 increase
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Ответ:
$240,000 increase
Explanation:
An increase in the Northern Division's sales of $600,000 would have had and impact of a $240,000 increase in the company's total net operating Income.
The $240,000 arise of the following detail:
An increase of $600,000 in the Northern Division has an impact in the variable cost but not in the fixed ones, the total fixed cost of $1,600,000 are not modified by an increase of total sales and the Other Expenses (Financial and Taxes) of -$900,000 neither.
Current Situation
TOTAL SouthernNorthernIncome Statement
$ 8,000,000$ 5,000,000$ 3,000,000Total Net Sales
$ 3,300,000$ 2,100,000$ 1,200,000Contributing Margin
-$ 1,600,000-$ 700,000-$ 600,000
$ 1,700,000$ 1,400,000$ 600,000Segment Margin
-$ 900,000
$ 800,000Net Operating Income
Simulated Situation
TOTAL SouthernNorthernIncome Statement
$ 8.600.000$ 5.000.000$ 3.600.000Total Net Sales
$ 3.540.000$ 2.100.000$ 1.440.000Contributing Margin
-$ 1.600.000-$ 700.000-$ 600.000
$ 1.940.000$ 1.400.000$ 840.000Segment Margin
-$ 900.000
$ 1.040.000Net Operating Income
Ответ:
Explanation:
what u need to do is outway yr thought with theirs