AutoSave O OFF A A . G G ... Document2 Home Insert Draw Design Layout References Mailings Review View Table Design Layout ? Tell me
AutoSave O OFF A A . G G ... Document2 Home Insert Draw Design Layout References Mailings Review View Table Design Layout ? Tell me Share Comments Courier New v 12 A" A Aa Ap EEVEEVEE 24 T AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCc AaBbCcDdEe Paste BI U vab X X|A DAY Norma No Spacing Heading 1 Heading 2 Heading 3 Styles Dictate Sensitivity Editor Pane Shown as follows are responsibility income statements for Mcdonalds, Inc., for the month of March. Superscript Investment Centers Mcdonalds, Inc Division 1 Division 2 Dollars Dollars Dollars Sales $470 , 000 100.00% $310, 000 100% $160, 000 100% Variable costs 234, 000 49. 79 186, 000 60 48, 000 30 Contribution $236, 000 50. 21% $124, 000 40% $112, 000 70% margin Fixed costs traceable to 141, 900 30. 19 65, 100 21 76, 800 48 divisions Division responsibility $ 94, 100 20.02% $ 58, 900 19% $ 35, 200 229 margin Common fixed 40 , 000 8 . 51 costs Income from $ 54, 100 11 . 51% operations Profit Centers Division 1 Product A Product B Dollars Dollars ars 310, 00 $ 124, 00 100.0 186, 00 100.0 Sales S 0 0 Variable 186, 00 130, 20 60 55, 800 45 . 00 70 . 00 costs 0 Page 1 of 2 281 words X English (United States) Focus + 140%AutoSave O OFF A A . G G ... Document2 Home Insert Draw Design Layout References Mailings Review View Table Design Layout ? Tell me Share Comments Courier New v 12 A" A Aa Ap AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCc AaBbCcDdEe Paste BIUvab X X|A DAY Norma No Spacing Heading 1 Heading 2 Heading 3 Styles Dictate Sensitivity Editor Pane Profit Centers Division 1 Product A Product B Dollars 8 Dollars Dollars 310, 00 10 124, 00 100 .0 186, 00 100.0 Sales S 0 Variable 186, 00 130, 20 60 55, 800 45 .00 70.00 costs 0 0 Contribution S 124, 00 30. 00% margin 0 40% $ 68, 200 55. 00% $ 55, 800 Fixed costs traceable to 43, 400 14 13, 020 10 .50 30, 380 16.33 products Product responsibility$ 80, 600 26% $ 55, 180 44.50% $ 25, 420 13 . 67% y margin Common fixed 21, 700 7 costs Responsibilit y margin for $ 58, 900 19% division Page 1 of 2 281 words X English (United States) Focus E + 140%AutoSave.DFV [f1] '9 v G [3] DocumentZ Ck g9 Home Insert Draw Design Layout References Mailings Review View Table Design Layout 9 Tell me '3 Share a Comments X Courier New v 12 v AA AV A v A ' . 7 " [E] a 0 AaBchDdEe AaEchDdEe AaBchDr AaBch AaBchDdEe ) : d V V Paste B I U , ab x x: A v I v A v Normal No Spacing Heading1 Heading: Headings Styles Dictate Sensitivity Editor g _ z g / Pane Required: a. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $3,000 per month and is expected to increase the sales of whichever product is advertised by $30,000 per month. Compute the expected increase in the responsibility margin of Division 1 assuming that (1) product A is advertised and (2) product B is advertised. e. Prepare an income statement for Buttereld, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $180,000. _ \\/ + 140% Page 2 of 2 281 words IE( English (United States) Focus n 1250
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