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Exercise 8-18 Cullumber, Inc. operates three divisions, Weak, Average, and Strong. As it turns out, the Weak division has the lowest operating income, and the

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Exercise 8-18 Cullumber, 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 that his division earned money for the company. Following is the most recent financial analysis for each division Weak Average Strong 125,100 $344,200 $501,400 Variable expenses58,700 192,00 309,300 Contribution margin 66,400 151,700 192,100 37,100 78,200 10,100 Allecated expenses 58,000 8,000 8,000 Operating income $(28,700) $15,s00 $24,000 Direct expenses Prepare a revised income statement showing the segment margin for each division. By how much would total income change if the Weak division were dropped? Total income wi by $ LINK TO 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? If Weak is dropped, then $ resulting in a $ Click if you would like to Show Work for this question: ehew Work will be allocated to Average for the division as currently reported LINK TO

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