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

In the fall, jay thompson decided to live in a university dormitory. he signed a dorm contract under which he was obligated to pay the room rent for the full college year. one clause stated that if he moved out during the year, he could sell his dorm contract to another student who would move into the dormitory as his replacement. the dorm cost was $5000 for the two semesters, which jay had already paid a month after he moved into the dorm, he decided he would prefer to live in an apartment. that week, after some searching for a replacement to fulfill his dorm contract, jay had two offers. one student offered to move in immediately and to pay jay $300 per month for the eight remaining months of the school year. a second student offered to move in the second semester and pay $2500 to jay. jay estimates his food cost per month is $500 if he lives in the dorm and $450 if he lives in an apartment with three other students. his share of the apartment rent and utilities will be $404 per month. assume each semester is 4.5 months long. disregard the small differences in the timing of the disbursements or receipts. what is the cost of the cheapest alternative?