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Current Attempt in Progress Sandhill, Inc operates three divisions, Weak. Average, and Strong. As it turns out the weak division has the lowest operating income,

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Current Attempt in Progress Sandhill, 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 Thomas, that his division earned money for the company. Following is the most recent financial analysis for each division: Weak Average $449,500 Sales revenue $126,600 Strong $531,700 303,300 Variable expenses 57.700 245.900 Contribution margin 68,900 203.600 228,400 30,700 Direct expenses 74,800 113,600 68,800 68,800 68,800 Allocated expenses $(30,600) Operating income $60,000 $46,000 (b) Your answer is partially correct. By how much would total income change if the Weak division were dropped? Total income will decrease by $ e Textbook and Media Save for Later Attempts: 2 of 3 used Submit Answer (c) Based on the way allocated expenses are divided among the divisions, what do you think will happen to the Average division if the company continues to prepare financial statements in this way, assuming Weak was dropped? 1 Weak is dropped, then Average will report allocated expenses of $ resulting in an eTextbook and Media Save for Later Attempts: 0 of 3 used situent Answer eTextbook and Media Save for Later Attempts: 2 of 3 used Submit Answer (c) Based on the way allocated expenses are divided among the divisions, what do you think will happen to the Average divisionit the company continues to prepare financial statements in this way, assuming Weak was dropped? ted expenses of $ resulting in ar of $ for the divisio operating come operating loss e Textbook and Media Save for Later Attempts: 0 of 3 used Submit

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