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Segment margin Contribution margin Allocated expense Operating income Variable expense Sales Direct costs mpt In Progress Cullumber, Inc. operates three divisions, Weak, Average, and Strong.
Segment margin Contribution margin Allocated expense Operating income Variable expense Sales Direct costs
mpt In Progress Cullumber, Inc. operates three divisions, Weak, Average, and Strong. As it turns out. the Weakdivision has the lowest operating income. and the president wants to close it. "Survival of the fittest, I say!" was his response when the Weak divisior/s manager, insisted Robert, that his division earned money for the company. Following is the most recent Knancial analysis for each division: Sales revenue Variable expenses Contribution margin Di rect expenses Allocated expenses Operating income Weak $127,500 51,100 76,400 31,700 67,400 $(22.700) Average $446,000 245,200 200,800 67,400 $62,600 Strong $546,400 304,900 241,500 112,000 67 , 400 $62.100 Prepare a revised income statement showing the segment margin for each division. Weak Average Strong
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