Vanik Corporation Currently Has Two Divisions Which Had the Following

question 186

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:

Diagnosis

The process of identifying and determining the nature of a problem, condition, or disease based on its symptoms or available data.

Stakeholder Task Force

A group consisting of individuals who have a vested interest in the outcome of a project or initiative, converging to guide decisions and actions.

Top Management

The highest level of managers within an organization, responsible for setting strategic goals and making crucial decisions.

Dictate

To give orders or instructions with authority, often without considering others' opinions or desires.