Crane, Inc. operates three divisions, Weak, Average, and Strong. As it turns out, the Weak division...

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Crane, 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 John, that his division earned money for the company. Following is the most recent financial analysis for each division: Weak Average Strong Sales revenue $126,800 $445,500 $514,600 Variable expenses 53,300 245,100 306,500 Contribution margin 73,500 200,400 208,100 Direct expenses 31,600 71,800 119,000 Allocated expenses 67,200 67,200 67,200 Operating income $(25,300) $61,400 $21,900 (a) Prepare a revised income statement showing the segment margin for each division. Weak Average eTextbook and Media Strong Crane, 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 John, that his division earned money for the company. Following is the most recent financial analysis for each division: Weak Average Strong Sales revenue $126,800 $445,500 $514,600 Variable expenses 53,300 245,100 306,500 Contribution margin 73,500 200,400 208,100 Direct expenses 31,600 71,800 119,000 Allocated expenses 67,200 67,200 67,200 Operating income $(25,300) $61,400 $21,900 (a) Prepare a revised income statement showing the segment margin for each division. Weak Average eTextbook and Media Strong

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Revised Income Statement showing Segment Margin WEAK AVERAGE STRONG TOT... View the full answer