mmcdaniels46867
04.12.2019 •
Business
Blossom, 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 that his division earned money for the company. following is the most recent financial analysis for each division weak average strong $125,000 $340,000 $500,000 50,000 190,000 300,000 sales revenue variable expenses contribution margin 75,000 150,000 200,000 30,000 50,000 operating income (5,000) $30,000 $40,000 direct expenses allocated expenses 70,000 110,000 50,000 50,000 your answer is correct. prepare a revised income statement showing the segment margin for each division weak average strong total sales 125,000 340,000 500,000 965,000 variable expense y 50,000 190,000 3 540,000 contribution margin 75,000 150,00 200,000 425,000
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