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Sandhill, Inc. operates three divisions, Weak, Average, and Strong. As it turns out, the Weak division has the lowest operating income, and the president wants
Sandhill, 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. "Sriof the fittest, I say!" was his response when the Weak division's manager insisted that his division earned money for the company. Following is the most recent financial analysis for each division: Weak Average Strong Sales revenue $125,300 $344,000 $516,700 Variable expenses 53,900 198,300 303,300 Contribution margin 71,400 145,700 213,400 32,500 53,200 Operating income $(14,300) $14,300 $45,900 Direct expenses Allocated expenses 78,200 114,300 53,200 53,200 (a) Prepare a revised income statement showing the segment margin for each division. Weak Average Strong Total Segment margin Allocated expense Direct expense Sales Contribution margin Operating income Variable expense ke to Show Work for this question: Open Show Work LINK TO VIDEO
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