Vanikoro Corporation currently has two divisions which had the following operating results for last year: Cork Division Rubber Division $300,000 $200,000 Sales $600,000 $310,000 $290,000 Variable costs Contribution Margin $100,000 Fixed costs for the division $110,000 $180,000 $100,000 $80,000 $60,000 Segment margin $40,000 $50,000 Allocated corporate fixed costs -$10,000 Net operating income (loss) Since the Rubber Division sustained a loss, the president of Vanikoro is considering the elimination of this division. All of the fixed costs for the division could be eliminated if the division was dropped. 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? $10,000 higher $40,000 lower $50,000 higher $100,000 lower (lgnore income taxes in this problem.) If you wanted to withdraw $12,000 from a bank account at the end of each of the next 20 years, approximately how much would you have to invest in the account today assuming a 6% interest rate? $20,924 $38,462 $74,880 $137,604 Tighe Corporation is contemplating purchasing equipment that would increase sales revenues by $420,000 per year and cash operating expenses by $231,000 per year. The equipment would cost $747,000 and have a 9 year life with no The annual depreciation would be $83,000. The simple rate of return on the investment is closest to: salvage value. 25.3% 14.2% 11.1% 25.2%