Giant Chef Equipment Company is organized into two divisions$$commercial sales and home products. During June, sales for the commercial sales division totaled $$1,500,000,$ and its contribution margin ratio averaged $34$ percent. Sales generated by the home products division totaled $$900,000,$ and its contribution margin ratio averaged $50$ percent. Monthly fixed costs traceable to each division are $$180,000.$ Common fixed costs for the month amount to $$120,000.$

Required:

a$.$ Prepare the Giant Chef$$s responsibility income statement for the current month. Report the responsibility margin for each division and income from operations for the company as a whole.

b$.$ Compute the dollar sales volume required for the Home Products Division to earn a monthly responsibility margin of $$500,000.$

c$-1.$ A marketing study indicates that sales in the home products division would increase by $5$ percent if advertising expenditures for the division were increased by $$15,000$ per month. Calculate the increase or decrease in responsibility margin.

c$-2.$ Would you recommend this increase in advertising?Complete this question by entering your answers in the tabs below.

Req C$2$

Prepare the Giant Chef's responsibility income statement for the current month. Report the responsibility margin for each division and income from operations for the company as a whole.

$\backslash$table$[[$GIANT CHEF EQUIPMENT COMPANY$],[$Responsibility Income Statement$],[$For June$],[,$Entire Company,$\backslash$table$[[$Commercial Sales$],[$Division$]],\backslash$table$[[$Home Products$],[$Division$]]],[,,,$Percent,,,Percent,,,Percent$],[$Sales$,,,,\%,,,,\%,,,,\%],[$Variable costs,,,,$\%,,,,\%,,,,\%],[$Contribution margin,$$,0,0,\%,$$$,0,0,\%,$$$,0,0,\%],[$Fixed costs traceable to product divisions,,,,$\%,,,,\%,,,,\%],[$Division responsibility margin,$$,0,0,\%,$$$,0,0,\%,$$$,0,0,\%],[$Common fixed costs,,,,$\%,,,,,,,,],[$Operating Income,$$,0,0,\%,,,,,,,,]]$ PLEASE FILL OUT ENTIRE CHART INCLUDING PERCENTAGES!!! THANK YOU!