ABC tid has two divisions, North and South. The following is last year's data for the total company: Sales Total Fixed expenses Average operating assets Minimum required rate of return $750,000 $310,000 $300,000 20% The additional data is for the two divisions: Sales Contribution margin ratio Traceable fixed expenses Average operating assets North South $500,000 $250,000 5096 48% $130,000 $57,500 $200,000 $100,000 Part A: Prepare a segmented income statement using the following table. (8 marks) Total North South Sales Variable expenses Contribution margin Less traceable fixed expenses Segment margin Less common fixed expenses Operating income foss) Contribution margin ratio Segment margin ratio 28 09 Part B: ABC can put on an advertising campaign in one (1) division only. The following data apply to this advertising 30 campaign: 2 3 Additional adivertising dollars Increase in divisional sales $30,000 $80,000 5 Should the North division receive the advertising dollars? Provide supporting calculations (3 marks) North Decision: Version A. Question 1 New