Azuki Corporation operates in two sales territories, Urban and Rural. Data concerning last year's operations appear below: Urban Rural Sales$320,000 $80,000 Variable expenses 208,000 56,000 Contribution margin 112,000 24,000 Traceable fixed expenses 48,000 30,000 Segment margin$64,000 $(6,000) Azuki's common fixed expenses were $25,000 last year. If operations in the Rural Sales Territory would have been discontinued at the beginning of last year, how would this have changed the net operating income of Azuki Corporation as a whole?
A. $24,000 decrease
B. $5,000 increase
C. $6,000 increase
D. $11,000 increase
Answer: C
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