Paradise Burger Company makes two burgers, each in a separate division: cheeseburgers and chiliburgers. Segmented income statements for the most recent year are as follows:

Paradise Burger€™s management is considering a special advertising campaign during broadcast coverage of a major sporting event. Management has determined that based on the expense of the advertising campaign, $28,000, only one division can be featured. In-house marketing studies suggest that the campaign could increase sales of the cheeseburgers division by $100,000 or increase sales of the chiliburgers division by $75,000.

Required
Which product should be featured in the campaign? Why? Show computations to support yourrecommendation.

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Chiliburgers $600,000 360,000 $240,000 100,000 $140,000 Cheeseburgers Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin $ 250,000 185,000 $ 65,000 45,000 $ 20,000