Question: NA Crane, Inc. operates three divisions, Weak, Average, and Strong. As it turns out, the weak division has the lowest operating income, and the president

 NA Crane, Inc. operates three divisions, Weak, Average, and Strong. As
it turns out, the weak division has the lowest operating income, and

NA 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 manag insisted 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 $348,400 $505,300 Variable expenses 51,700 199,900 303,600 Contribution margin 73,300 148,500 201,700 Direct expenses 30,300 78,700 117,700 Allocated expenses 59,400 59,400 59,400 Operating income $(16,400) $10,400 $24,600 Your answer is correct. Prepare a revised income statement showing the segment margin for each division Weak Average Strong Total Sales 125000 348400 505300 978700 Variable expense 51700 199900 303600 555200 Contribution margin 73300 148500 201700 423500 Direct expense 30300 78700 117700 226700 43000 Segment margin 69800 84000 196800 Allocated expense 17200 tv Search or type URL $ 4 2 3 5 6 7 8 9 Q E R T Y S D F G H J Z C V B N M CALCULATOR PRINTER VERSION (BACK 43UUU DY000 84000 Segment margin 196800 Allocated expense 178200 18600 Operating income Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT LINK TO VIDEO Attempts: 4 of 15 used (b) Your answer is partially correct. Try again. By how much would total income change if the Weak division were dropped? Total income will decrease by $ Click if you would like to Show Work for this question: Open Show Work

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