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Blossom, Inc. operates three divisions, Weak, Average, and Strong. As it turns out, the Weak division has the lowest operating income, and the president
Blossom, Inc. operates three divisions, Weak, Average, and Strong. As it turns out, the Weak division has the lowest operating income, and the president wants to close it. "Survival of the fittest, I say!" was his response when the Weak division's manager, insisted Daniel, that his division earned money for the company. Following is the most recent financial analysis for each division: Weak Average Strong Sales revenue $127,800 $450,500 $520,500 Variable expenses 58,800 246,100 306,500 Contribution margin 69,000 204,400 214,000 Direct expenses 36,100 73.200 114,100 Allocated expenses 69.200 69,200 69.200 Operating Income $(36,300) $62,000 $30,700
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