3 Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March. .5 oints eBook Investment Centers Butterfield, Inc Division 1 Division 2 Dollars Dollars Dollars Sales $510,000 100.00% $340,000 100% $170,000 100% Variable costs 255,000 50.00 204,000 60 51,000 30 Contribution margin $255,000 50.00% $136,000 40% $119,000 70% Fixed costs traceable to 153,000 30.00 71,400 21 81,600 48 divisions Division responsibility $102,000 20.00% $ 64,600 19% $ 37,400 22% margin Common fixed costs 50,000 9.80 Income from $ 52,000 10.20% operations Print eference Profit Centers Division 1 Product A Product B Dollars Dollars Dollars % Sales $340,000 100% $136,000 100.00% $204,000 100.00% Variable costs 204,000 60 61,200 45.00 142,800 70.00 Contribution margin $136,000 40% $ 74,800 55.00% $ 61,200 30.00% Fixed costs traceable 47,600 14 to products 14,280 10.50 33, 320 16.33 Product 26% $ 60,520 44.50% $ 27,880 13.67% responsibility margin$ 88,400 Common fixed costs 23,800 7 Responsibility marging 64,600 19% for division Required: a. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $3,000 per month and is expected to increase the sales of whichever product is advertised by $40,000 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 $190,000. Complete this question by entering your answers in the tabs below. Required Required A E Prepare an income statement for Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $190,000. (Round your percentage answers to 2 decimal place (i.e. 0.1234 should be considered as 12.34%).) BUTTERFIELD, INC. Responsibility Income Statement For April Butterfield, Inc. Division 1 Division 2 Dollars Percent Dollars Percent Dollars Percent $ $ Sales 100.00% 500,000 160,000 100.00 % Variable costs 216,000 49.09% 168,000 60.00% 48,000 30.00% $ $ Contribution margin 50.91 % $ 284,000 172,000 40.00% 112,000 70.00% Fixed costs traceable to 126,000 28.64 % 58,800 21.00% 67,200 divisions 42.001% Division responsibility $ $ 22.27% 28.00 % margin 158,000 Common costs 50,000 11.36 % $ Income from operations 10.91% 108,000 340,000 100.00% 113,200 19.00 % $44,800