Question: 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


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 $125,300) $61.400 $21.900 Weak Average Strong Total $ 126800 445500 514600 $ 108. 53300 245100 306500 604906 73500 200400 208100 48 31600 71800 119000 222400 $ 41900 $ 128600 8910 35 201604 By how much would total income change if the Weak division were dropped? Total income will increase bys e Textbook and Media
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