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Sherldan, Inc. operates three divislons, Weak, Average, and Strong, As it tums out, the Weak divislon has the lowest operating Income, and the president wants
Sherldan, Inc. operates three divislons, Weak, Average, and Strong, As it tums out, the Weak divislon has the lowest operating Income,
and the president wants to close It "Survival of the fittest, I say!" was hils response when the Weak division's manager, Inslsted Steven,
that hils division earned money for the company. Following ls the most recent financlal analysls for each division:
a
b
Your answer ls partlally correct.
By how much would total Income change if the Weak dlvislon were dropped?
Total Income will
by $
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Attempts: of 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 financlal statements In thls way, assuming Weak was dropped?
xpenses of $
resulting in an
of $
for the division.
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