QUESTION 24 Vanikoro Corporation currently has two divisions

QUESTION 24 Vanikoro Corporation currently has two divisions which had the following operating results for last year: Cork Rubber Division Division .$600,000 $300,000 310,000 200.,000 290,000 100,000 Sales Contribution margin Fixed costs for the division Segment margin 180,000 40,000 rate fixed cost...100,00050,000 Al Net operating income (loss).$80,000 Since the Rubber Division sustained a loss, the president of Vanikoro is considering the elimination of this division Al at the beginning of last year, how much higher or lower would Vanikoro\'s total net operating income have been for the D $10.000 higher D $40,000 lower O $50,000 higher O $100,000 lower QUESTION 25 Cuda Corporation makes a product that uses a material with the following standards: Standard quantity

Solution

B. $40,000 lower

If the Rubber Division had been eliminated, Vanikoro would have lost its segment margin of $40,000. Consequently, overall net operating income would have been $40,000 lower.