Darby Press publishes two lines of books-fiction and nonfiction. Cost and revenue data for each product line for the current month are as follows. Product Lines Fiction Nonfiction Sales $ 800, 000 $ 300, 000 Variable costs as a percentage of sales 60% 208 Fixed costs traceable to product lines $ 80,000 $ 125 , 000 In addition to the costs shown, the company incurs monthly fixed costs of $260,000 common to both product lines. Required: a. Prepare the company's responsibility income statement for the current month. Report the responsibility margin for each product line and income from operations for the company as a whole. Also include columns showing all dollar amounts as percentages of sales. b-1. Compute expected monthly increase (decrease) in operating income for both fiction and nonfiction assuming that a marketing survey shows that a $50,000 monthly advertising campaign focused on either product line should increase that product line's monthly sales by approximately $75,000 b-2. Based on the information given in requirement B1., for which product line do you recommend this additional advertising ? c-1. Compute expected monthly increase (decrease) in operating income for both fiction and nonfiction assuming that the management is considering expanding one of the company's two product lines. The plan under consideration is expected to increase the sales of the expanded product line by $100,000. It is also expected to increase the traceable fixed costs of the expanded product line by 55 percent. c-2. Based on the information provided in requirement C1., which product line do you recommend expanding? Complete this question by entering your answers in the tabs below. Reg A Req B1 Req B2 Req C1 Req C2 Prepare the company's responsibility income statement for the current month. Report the responsibility margin for each product line and income from operations for the company as a whole. Also include columns showing all dollar amounts as percentages of sales. (Round your percentage answers to the nearest whole percent.) Darby Press Responsibility Income Statement For the Current Month Entire Company Fiction Line Nonfiction Line Dollars Percent Dollars Percent Dollars Percent % % % % % % $ 0 0 % 0 1% $ 0 0% % % % $ 0 0% $ 0 0% 0 0% % $ 0 0 % Req A Req B1 >Req A Req B1 Req B2 Req C1 Req C2 Compute expected monthly increase (decrease) in operating income for both fiction and nonfiction assuming that a marketing survey shows that a $50,000 monthly advertising campaign focused on either product line should increase that product line's monthly sales by approximately $75,000. Fiction Nonfiction Expected monthly increase in contribution margin Expected monthly increase (decrease) in operating income 0 $ 0 Req A Req B1 Req B2 Req C1 Req C2 Based on the information given in requirement B1., for which product line do you recommend this additional advertising ? Which product line do you recommend? Reg A Reg B1 Reg B2 Req C1 Reg C2 Compute expected monthly increase (decrease) in operating income for both fiction and nonfiction assuming that the management is considering expanding one of the company's two product lines. The plan under consideration is expected to increase the sales of the expanded product line by $100,000. It is also expected to increase the traceable fixed costs of the expanded product line by 55 percent. Show less A Fiction Nonfiction Expected monthly increase in contribution margin Expected monthly increase (decrease) in operating income $ 0 $ 0 Reg A Reg B1 Reg B2 Reg C1 Reg C2 Based on the information provided in requirement C1., which product line do you recommend expanding? Which product line do you recommend expanding? : Nonfiction Both Fiction Nonfiction