4. Shown below are the current-year data for two profit centers of Chelsea Trading, Inc.

Center 1 Center 2

Revenue $ 2,260,000 $ 2,040,000

Variable Expenses $ 1,723,000 $ 1,442,000

Traceable Fixed Costs $ 346,000 $ 563,000

Common Fixed Costs $ 50,000 $ 30,000

(a) Compute the following measures for each profit center:

Center	Contribution Margin	Contribution Margin Ratio	Responsibility Margin
1	$__________	_________%	$_________
2	$__________	_________%	$_________

(b) Assume that a $3,000 monthly expenditure for advertising could increase the monthly sales of either profit center by $20,000. Which center should the company advertise to receive the maximum benefit from its advertising expenditure? Center _________. Explain your reasoning: