Because the Rubber Division sustained a loss, Vanikoro 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 fixed costs could be avoided. If the Rubber Division was dropped at the beginning of last year, how much higher or lower would Vanikoro's total net operating income have been for the year?
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Home » Business » Because the Rubber Division sustained a loss, Vanikoro is considering the elimination of this division. All of the division's traceable fixed costs could be avoided if the division was dropped.