1 Shown as follows are responsibility Income statements for Butterfield, Inc., for the month of March 10 points 2 Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common fixed costs Income from operations Investment Centers Butterfield, Inc Division 1 Division 2 Dollars Dollars Dollars $410,000 100.eex $ 270, lees $ 140,00 204, 162, be $206.000 50.245 5 100,000 485 598.000 123.900 30.22 56,00 21 67,200 $ 82,120 20.02% 51,300 40.000 9.26 $ 42,100 10.27 eBook Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division Profit Centers Division 1 Product A Products Dollars Dollars Dollars 3 $ 270,000 100% $ 109,000 100.00 $ 162,00 200.00 162,000 48,600 113, cee 78.00 $10.00 4e 559,40 55.ees 548, see 30.ees 11.340 10.se 16.33 26% $ 48,060 44.5es 22,140 13.67% 18,9ee $ 51,300 19% Required: a. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $2.000 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 Als 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 $160,000 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 $2.000 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 is advertised. Expected Change in Responsibility Margin Product A Product RA RequiredE > Complete this question by entering your answers in the tabs below. Required A Required E Prepare an income statement for Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $160,000. (Round your percentage answers to 2 decimal place (ie. 0.1234 should be considered as 12.34%).) BUTTERFIELD, INC. Responsibility Income Statement For April Butterfield, Inc. Division 1 Dollars Percent Dollars Percent Division 2 Dollars Percent % 96 $ * % Complete this question by entering your answers in the tabs below. Required A Required E Prepare an income statement for Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $160,000. (Round your percentage answers to 2 decimal place (ie. 0.1234 should be considered as 12.34%).) BUTTERFIELD, INC. Responsibility Income Statement For April Butterfield, Inc. Division 1 Dollars Percent Dollars Percent Division 2 Dollars Percent % 96 $ * %