Cullumber, 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 divisions manager, insisted Robert, that his division earned money for the company. Following is the most recent financial analysis for each division:

		Weak			Average		Strong
Sales revenue		$ 127,500			$ 446,000		$ 546,400
Variable expenses		51,100			245,200		304,900
Contribution margin		76,400			200,800		241,500
Direct expenses		31,700			70,800		112,000
Allocated expenses		67,400			67,400		67,400
Operating income		$( 22,700)			$ 62,600		$ 62,100

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

Total income will select an option increasedecrease by $ enter a dollar amount .

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?

If Weak is dropped, then Average will report allocated expenses of $ enter a dollar amount , resulting in an select an option operating incomeoperating loss of $ enter a dollar amount for the division.