Nantor Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Total CompanySouthern NorthernSales$8,000,000$5,000,000 $3,000,000 Contribution margin$3,300,000$2,100,000 $1,200,000 Divisional segment margin$2,000,000$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.) (Round your intermediate calculations to 2 decimal places.)
A. $60,000 increase
B. $240,000 increase
C. $1,200,000 increase
D. $160,000 increase
Answer: B
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