Physical Phitness, 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 Anna Hoffman, that his division earned money for the company. Following is the most recent financial analysis for each division: Weak Average Strong Sales revenue $ 125,000 $ 450,000 $ 600,000 Variable expenses 45,000 250,000 300,000 Contribution margin 80,000 200,000 300,000 Direct expenses 30,000 80,000 100,000 Allocated expenses 70,000 70,000 70,000 Operating income $(20,000) $ 50,000 $ 130,000 Prepare a revised income statement showing the segment margin for each division. Weak Average Strong Sales $ 125000 $ 450000 $ 600000 Variable expense (45000) (250000) (300000) Contribution margin 80000 200000 300000 Direct expense (30000) i (80000) i (100000) Segment margin $ 50000 $ 120000 $ 200000 Allocated expense Operating income V X Your answer is incorrect. By how much would total income change if the Weak division were dropped? Total income will increase by $ 160000