Valber Company Is Considering Eliminating Its Phone Division

question 110

Multiple Choice

Valber Company is considering eliminating its phone division. The company allocates fixed costs based on sales. If the phone division is dropped, $150,000 of the fixed costs allocated to that division could be eliminated. The impact on Valber's operating income from eliminating the phone division would be:

• A) $30,000 increase
• B) $150,000 increase
• C) $150,000 decrease
• D) $15,000 increase
• E) $30,000 decrease

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Definitions:

Anorexia Nervosa

An eating disorder characterized by an obsessive fear of gaining weight, leading to severe dietary restriction and weight loss.

Refeeding

The process of reintroducing food after a period of malnourishment or starvation.

Anorexia Nervosa

An eating disorder characterized by an obsessive fear of gaining weight, leading to severe restrictions on food intake and dangerously low body weight.

Eating Patterns

The habitual dietary choices, timing, and frequency of eating meals and snacks by an individual or group.