Exercise 8-18 (Part Level Submission) Wildhorse, Inc. operates three divisions,

Question

Exercise 8-18 (Part Level Submission) Wildhorse, 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 Sales revenue $126,900 $342,800 $527,600 Variable expenses 57,000 196,900 300,500 Contribution margin 69,900 145,900 227,100 30,600 77,800 113,200 53,600 53,600 Operating income $(14,300) $14,500 $60,300 Direct expenses Allocated expenses

Explanation / Answer

Weak Average Strong Total Sales revenue 126900 342800 527600 997300 Variable expenses 57000 196900 300500 554400 Contribution margin 69900 145900 227100 442900 Direct expenses 30600 77800 113200 221600 Segemnt margin 39300 68100 113900 221300 Allocated expenses 160800 Operating income 60500

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.