Vanik Corporation Currently Has Two Divisions Which Had the Following

question 24

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:

Auricle

The outer part of the ear that captures sound waves and directs them into the ear canal.

Rhegmatogenous

Pertains to a type of retinal detachment that occurs due to a tear or break in the retina, allowing fluid to accumulate under the retina.

Exudative

Pertaining to any fluid that filters from the circulatory system into lesions or areas of inflammation.

Traction

The application of a pulling force to a part of the body to realign or immobilize bones and joints.