A company currently has the following income statement: Sales 1,000000 VC 390,000 CM 610,000 FC 625,000 Net income (15,000) 1. Prepare a contribution margin IS segmented by division: Divisions: East Central West Sales 250,000 400,000 350,000 VC (% sales) 52% 30% 40% Traceable FC 160,000 200,000 175,000 2. If the West division increases its advertising by 15,000, what will be the impact on the company's net income? Pricing Decisions A redesigned product has the following costs: Dm = $6, DL = $4, VMOH= $3, FMOH = $100,000 Vselling = $2, Fselling = $60,000 The company invested $100,000 in operating assets to sell an estimated sales volume of 20,000 units. The required return on investment in its operating assets is 20%. 1. What is the markup percentage on absorption cost? 2. What is the estimated selling price