Wildhorse, 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 Chris, that his division earned money for the company. Following is the most recent financial analysis for each division Weak Average Strong Sales revenue $126.900 $450,000 $527,600 Variable expenses 57,000 246,000 300,500 Contribution margin 69.900 204,000 227.100 Direct expenses 30,600 77,800 113,200 Allocated expenses 69,000 69,000 69,000 $(29,700) Operating income $57,200 $44,900 Weak Average Strong Sales 126900 342800 52760 Variable expense 57000 i 196900 300500 Contribution margin 49900 145900 27100 Direct expense 30000 i 7800 110300 Segment margin 39300 68100 $ Allocated expense Operating income Your swer is partially correct By how much would total income change if the Weak division were dropped! Total income will decrease by s e Textbook and Media Attempts: 1 of 3 used Suami An Sve for Later (c) Based on the way allocated expenses are divided among the divisions, what do you think will happen to the Average division is the company continues to prepare financial statements in this way, assuming Weak was dropped? resulting in an I Weak is dropped, then Average will report allocated expenses of