5. RBS Inc. sells a variety of drink and food products including potato chips and sodas. The segmented income statements for these two products are as follows:

	Sodas		Chips
Sales	$800,000		$900,000
Variable expenses	200,000		315,000
Contribution margin	600,000		585,000
Traceable fixed expense	120,000		160,000
Segment margin	$480,000		$425,000

RBS's management is considering a special advertising campaign that will run during a major sporting event. The advertising campaign is expected to cost $30,000 and only one product can be featured. In-house marketing studies show that the campaign could increase sales of the soda division by $200,000 or increase sales of the chips division by $275,000.

A. What will be the overall net effect on the company's total profits if the advertising focuses on sodas?

B. What will be the overall net effect on the company's total profits if the advertising focuses on chips?