Hernandez Enterprises has two divisionsRetail and Wholesale. Cost and revenue data for each division for the current month are as follows. Sales Variable costs as a percentage of sales Fixed costs traceable to product lines Divisions Retail $500,000 30 % $250,000 Wholesale $360,000 40 % $120,000 In addition, fixed costs that are common to both divisions amount to $96,000. Required: a. Based on an analysis of the responsibility margin of each division, which division is most profitable in terms of dollars of responsibility margin that it continues to contribute to the company? b. Should the common fixed costs be considered when determining the profitability of the two divisions individually? c. The company has $15,000 to be used in advertising for one of its two divisions and expects that this expenditure will result in additional sales of $60,000. Which division will the company choose to spend this advertising on and what will be the impact on operating income