10) Yanik Corporation currently has two divisions which had the following operating results for last...
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10) Yanik Corporation currently has two divisions which had the following operating results for last year Rubber Sales Variable costs Contribution margiun Traceable fixed costs Segment margin Allocated common corporate fixed costs Net operating income (loss) Cork Division Division $ 600,000 350,000 220,000 130,000 110,000 20,000 45,000 250,000 350,000 160,000 190,000 80,000 S 110000 (25,000) 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) (S 20,000) B) S 20,000 C) S 25,000 D) (S 25,000) E) None of the above
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