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 Kevin, that his division earned money for the company Following is the most recent financial analysis for each division Weak Average $455,500 $125,900 Strong $527,200 305,000 54,200 247,100 Sales revenue Variable expenses Contribution margin Direct expenses 71,700 208,400 222 200 30,100 77,000 110,200 Allocated expenses 71,200 71.200 71,200 Operating income $(29,600) $60,200 $40,800 weak Average strong Sales 125900 455500 li Variable expense 54200 247100 30 Contribution margin v 71700 200400 Direct expense 301001 77000 110 Segment margin 41600 131400 $ Allocated expense Operating income By how much would total income change if the Weak division were dropped? Total income will by $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (C) 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? resulting in an If Weak is dropped, then Average will report allocated expenses of $