Nantua Corporation Has Two Divisions, Southern and Northern

Multiple Choice

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. )

A) $30, 000 increase
B) $80, 000 increase
C) $120, 000 increase
D) $300, 000 increase