Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

26) Vanikord Corporation currently has two divisions which had the following operating 26 ) results for last year: boobbo vivilos To level endt is Ting

image text in transcribed
26) Vanikord Corporation currently has two divisions which had the following operating 26 ) results for last year: boobbo vivilos To level endt is Ting ordi anijubong to alzoo. dniwollot of ghroger Insuregact Cork Rubber JU 199 Division Division Sales $500,000 $400,000 Variable costs.. 210,000 300,000 Contribution margin. 290,000 100,000 Traceable fixed costs 130,000 70,000 Segment margin ......... 160,000 30,000 Allocated common corporate fixed costs. .. 90,000 50,000 Net operating income (loss) ...... $ 70.000 $(20.000 hello ebi railgque obieluoutA Because the Rubber Division sustained a loss, the president of Vanikoro is considering the elimination of this division. All of the division's traceable fixed costs could be avoided if the division was dropped. None of the allocated common corporate fixed costs could be avoided. If the Rubber Division was dropped at the beginning of last year, how much higher or lower would Vanikoro's total net operating income have been for the year? crom sal bbroo S A) $50,000 lower B) $30,000 lower ubore C) $50,000 higher D) $20,000 higher

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian Edition

1119497043, 978-1119497042

More Books

Students also viewed these Accounting questions

Question

Explain the importance of setting goals.

Answered: 1 week ago

Question

Define Scientific Management

Answered: 1 week ago

Question

Explain budgetary Control

Answered: 1 week ago

Question

Solve the integral:

Answered: 1 week ago

Question

What is meant by Non-programmed decision?

Answered: 1 week ago

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago