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Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March. Investment Centers Division1 Butterfield, Inc Division 2 Dollars % Dollars Dollars $450,000 100% $300,000 100% $150,000 100)% Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common fixed costs Income from operations 225,000 58 80,000 60 45,000 30 $225,000 50% $129,000 40%$105,000 76% 135,900 363,000 2172,0048 $90,000 20% $57,000 19% $3,000 22% 45,000 10 45,000 10% Profit Centers Product A Division 1 Product B Dollars Dollars $ 300,000 100% $ 100,000 100% $ 200,000 100% 52,00052 $120,000 48% $48,000 48% $72,000 36% Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division 88,00 52 128,000 42,000 14 26,000 26 16,000 $78,000 26% $22,000 22% $56,000 28% 21,908 57,000 19% Required a. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $10.000 per month and is expected to increase the sales of whichever product is advertised by $30,000 per month. Compute the expected increase in the responsibility margin of Division 1 assuming that (1) product A is advertised and (2) product B is advertised e. Prepare an income statement for Butterfield. Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $200,000. Complete this question by entering your answers in the tabs below Required A Required E The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $10,000 per month and is expected to increase the sales of whichever product is advertised by $30,000 per month. Compute the expected increase in the responsibility margin of Division 1 assuming that (1) product A is advertised and (2) product B is advertised Change in Responsibil Margin Product A Product B Required E > Prev 1 of 4111 Next> e to search Required A Required E pare an income statement for Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 Increase to $200,000 BUTTERFIELD, INC. Responsibility Income Statement For April Division 1 Division 2 Butterfield, Inc. Percent Percent Dollars Perce Dollars Dollars

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