Ivanhoc. Inc operates three clvilons, Weak.locrac. and Strong. Ask turns out the Weak dhision has the lowest operating income, and the president wants to doselit."Survtal of the nttest, I say was his response when the Weak doslon's manager insisted that his division carned money for the company. Following is the mos recent financial analysis for cach civision Sales revenue Variable experi Contration margin Direct expenses Allocated expenses Operating Income Weak $127,500 5 4.900 72,600 39,800 57,200 $24,4001 Poverage Strong $346,400 $545 900 194.900 307,100 151,500 233,900 80.000 112100 57,200 57,200 $14,300 $59.500 Your answer is correct Prepare a revised Income statement showing the segment margin tor each division Weak Strong Total $ $ 545.900 $ Sales Variable expense : Contribution margin: 127,300 54.900 A 72800 39800 Average 34.400 1914,900 151 500 80000 307.100 299800 112100 1019900 556900 462900 231200 Direct expert $ 71500 $ Segment margin : Alocated expense : Operating income : 171000 59400 Test back and Media Attempts: 2 of uued Your answer is correct. By how much would total troomechanac If the Weakcivision were dropped Tocal income will y s 32800 A Textbook and Media Attempts: 1 of 3 used Based on the way allocated expenses are divided among the divisions.what do you think will happen to the werage division if the company continues to preparehnancial statements in this way.assuming Weak was dropped? ir Weaksdropped, thens wil be allocated to Average resulting in a $ for the divisianas currently reported