Vanik Corporation Currently Has Two Divisions Which Had the Following

question 247

Multiple Choice

Vanik Corporation currently has two divisions which had the following operating results for last year: Because the Rubber Division sustained a loss, the president of Vanik 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, the financial advantage (disadvantage) to the company for the year would have been:

• A) ($20,000)
• B) $20,000
• C) $25,000
• D) ($25,000)

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Definitions:

Criteria For Evaluation

The standards or benchmarks used to assess or judge the quality, value, or suitability of something.

Negotiate

The process of discussing terms and conditions between two or more parties with the goal of reaching a mutually acceptable agreement.

Early Supplier Involvement

A strategy where suppliers are engaged in the product design and development process at an early stage to leverage their expertise and innovation.

First Tier Suppliers

First tier suppliers are direct providers of goods or services to a company, directly influencing the quality and delivery of the final product.