Ivanhoe, 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 Donald, that his division earned money for the company. Following is the most recent financial analysis for each division:

Weak Average Strong Sales revenue $127,700 $452,000 $522,300 Variable expenses 54,600 246,400 302,800 Contribution margin 73,100 205,600 219,500 Direct expenses 32,100 71,300 116,100 Allocated expenses 69,800 69,800 69,800 Operating income $(28,800) $64,500 $33,600 (a) Prepare a revised income statement showing the segment margin for each division.

Weak Average Strong Total select an income statement item $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount select a summarizing line for the first part enter a total amount for the first part enter a total amount for the first part enter a total amount for the first part enter a total amount for the first part select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount select a summarizing line for the second part $enter a total amount for the second part $enter a total amount for the second part $enter a total amount for the second part enter a total amount for the second part select an income statement item enter a dollar amount select a closing name for this statement $enter a total amount for this statement eTextbook and Media Attempts: 0 of 3 used (b) By how much would total income change if the Weak division were dropped?

Total income will select an option by $enter a dollar amount . eTextbook and Media Attempts: 0 of 3 used (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?

If Weak is dropped, then Average will report allocated expenses of $enter a dollar amount , resulting in an select an option