multiple choice boxes:

Part c:

Carla Vista, 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 Joseph, that his division earned money for the company. Following is the most recent financial analysis for each division: Weak Average Strong Sales revenue $125,400 $449,000 $546,900 Variable expenses 53,900 245,800 300,700 Contribution margin 71,500 203,200 246,200 Direct expenses 35,100 79,700 112,700 Allocated expenses 68,600 68,600 68,600 Operating income $(32,200) $54,900 $64,900 (a) Prepare a revised income statement showing the segment margin for each division. Weak Average Strong $ $ $ 4 $ $ $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Total ta $ $ ta $ Segment margin Allocated expense Contribution margin Direct costs Operating income Sales Variable expense (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 $L will be allocated to Average, resulting in a $L for the division as currently reported LINK TO TEXT profit loss