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 Matthew, that his division earned money for the company. Following is the most recent financial analysis for each division:

		Weak			Average		Strong
Sales revenue		$125,000			$456,500		$505,300
Variable expenses		51,700			247,300		303,600
Contribution margin		73,300			209,200		201,700
Direct expenses		30,300			78,700		117,700
Allocated expenses		71,600			71,600		71,600
Operating income		$(28,600)			$58,900		$12,400

(a)

Prepare a revised income statement showing the segment margin for each division.

		Weak		Average		Strong		Total
select an income statement item		$		$		$		$
select an income statement item		$		$		$		$
select a summarizing line for the first part		$		$		$		$
select an income statement item		$		$		$		$
select a summarizing line for the second part		$		$		$		$
select an income statement item		$		$		$		$
select a closing name		$		$		$		$$

(b)

By how much would total income change if the Weak division were dropped?

(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?