3:28 AM Tue Nov 10 40% chegg.com See this solution in the app Answers from our experts for your tough homework questions Enter question : Chapter 22, Problem 4PSA 2 Bookmarks Show all steps: ON Problem Continue to post 20 questions remaining Muscle Bound Co. sells home exercise equipment. The company has two sales territories, Eastern and Western. Two products are sold in each territory FasTrak (a Nordic ski simulator) and Row Master (a stationary rowing machine). During January, the following data are reported for the Eastern territory Snap a photo from your phone to post a question We'll send you a one-time download link FasTrak Row Master 888-888-8888 Sales Contribution marginalios Traceable fixed costs....... $600,000 55% $80.000 $750,000 40% $150,000 Text me By providing your phone number, you agree to receive a one-time automated text message with a link to get the app. Standard messaging rates may apply. My Textbook Solutions Solutions Solution Sortir Common fixed costs in the Eastern territory amounted to $120,000 during the month. During January, the Western territory reported total sales of $600,000, variable costs of $270,000, and a responsibility margin of $200,000. Muscle Bound also incurred $180,000 of common fixed costs that were not traceable to either sales territory In addition to being profit centers, each territory is also evaluated as an investment center. Average assets utilized by the Eastern and Western territories amount to $14,000,000 and $12,000,000, respectively. Instructions a. Prepare the January income statement for the Eastern territory by product line. Include columns showing percentages as well as dollar amounts. Ches Chew Financial Financial & Business Law Managerial Managerial.. 18th Edition 16th Edition 4th Edition View all solutions Chegg tutors who can help right now b. Prepare the January income statement for the company showing profits by sales territories. Conclude your statement with income from operations for the company and with responsibility margins for the two territories. Show percentages as well as dollar amounts. Maria MSU-IIT Ileana University of V... 449 C. Compute the rate of return on average assets earned in each sales territory during the month of January DEEPA UPTTI 1103 Find me a tutor d. In part a, your income statement for the Eastern territory included $120,000 in common fixed costs. What happened to these common fixed costs in the responsibility income statement shown in part b? e. The manager of the Eastern territory is authorized to spend an additional $50,000 per month to advertise one of the products. On the basis of past experience, the manager estimates that additional advertising will increase the sales of either product by $120,000. On which product should the manager focus this advertising campaign? Explain. f. Top management is considering investing several million dollars to expand operations in one of its two sales territories. The expansion would increase the traceable fixed costs to the expanded territory in proportion to its increase in sales. Which territory would be the best candidate for this investment? Explain. Step-by-step solution There is no solbron Soome