Vanikord Corporation currently has two divisions which had the following operating results for last year: Sales Variable costs Contribution margin Traceable fixed costs Segment margin Allocated common corporate fixed costs Net operating income (loss) Cork Rubber Division Division $500,000 $400,000 210,000 300,000 290,000 100,000 130,000 70,000 160,000 30,000 90,000 50,000 $ 70,000 $(20,000) 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?

Vanikord Corporation currently has two divisions which had the following operating results for last year: Because the Rubber Division sustained a loss, the president of Vanikoro is considering the elimination of this division, All of the division's traceable foxed 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 Varikoro's total net operating income have boort for the year? Mutiple Choice $20.000 higher $50,000 higher $50,000 lower $30.000 lower