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 Urban sales were 10% higher last year, by approximately how much would Azuki's net operating income have increased? (Assume no change in selling prices, unit variable expenses, or total fixed expenses.)
A. $11,200
B. $4,400
C. $6,400
D. $32,000
Answer: A
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