Question: Please help with a through c and show formulas. Thank you for your help. Sunland, Inc. operates three divisions, Weak, Average, and Strong. As it

Please help with a through c and show formulas.
Thank you for your help.  Please help with a through c and show formulas. Thank you
for your help. Sunland, 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 Charles, that
his division earned money for the company. Following is the most recent

Sunland, 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 Charles, that his division earned money for the company. Following is the most recent financial analysis for each division: Sales revenue Variable expenses Contribution margin Direct expenses Allocated expenses Operating income Weak $126,500 52,400 74.100 30,300 68,400 $(24,600) Average $448,500 245,700 202,800 76,800 68,400 $57,600 Strong $526,200 307,100 219,100 113,300 68,400 $37,400 Sales Variable expense Contribution margin Direct expense Segment margin Allocated expense Operating income Weak 126500 52400 74100 30300 43800 Average 448500 245700 202800 76800 126000 $ Strong 52620 307100 21910 113300 1058 Weak 126500 52400 i 74100 30300 43800 Average 448500 245700 202800 76800 126000 Strong 526200 307100 219100 113300 105800 Total 1101200 605200 496000 220400 275600 00 (b) By how much would total income change if the Weak division were dropped? Total income will eTouth. increase decrease by $ (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? I If Weak is dropped, then Average will report allocated expenses of $ resulting in an (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? penses of $ , resulting in an oks for the division

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