Exercise 8-18 (Part Level Submission) Wildhorse, 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 Sales revenue $126,900 $342,800 $527,600 Variable expenses 57,000 196,900 300,500 Contribution margin 69,900 145,900 227,100 30,600 77,800 113,200 53,600 53,600 Operating income $(14,300) $14,500 $60,300 Direct expenses Allocated expenses