I need help in answering e-1. The manager of the Eastern territory is authorized to spend an additional $50,000 per month to advertise one of the products. Based on past experience, the manager estimates that additional advertising will increase the sales of either product by $120,000?

Muscle Bound Co. sells home exercise equipment. The company has two sales territories, Eastern and Western. Two products are sold in each territory: FasTrak (a Nordic ski simulator) and RowMaster (a stationary rowing machine). During January, the following data are reported for the Eastern territory. Sales Contribution margin ratios Traceable fixed costs FasTrak $ 600,000 55% $ 80,000 RowMaster $750,000 40% $150,000 Common fixed costs in the Eastern territory amounted to $120,000 during the month. During January, the Western territory reported total sales of $600,000, variable costs of $270,000, and a responsibility margin of $200,000. Muscle Bound also incurred $180,000 of common fixed costs that were not traceable to either sales territory. In addition to being profit centers, each territory is also evaluated as an investment center. Average assets utilized by the Eastern and Western territories amount to $14,000,000 and $12,000,000, respectively. Complete this question by entering your answers in the tabs below. Req A Req B Reqc Req E1 Req E2 The manager of the Eastern territory is authorized to spend an additional $50,000 per month to Based on past experience, the manager estimates that additional advertising will increase the sal $120,000? % Incremental revenue Less: Incremental fixed costs Incremental increase in contribution margin Less: Incremental fixed costs Increase (decrease) in responsibility margin Fas Trak $ 120,000 50,000 $ 70,000 50,000 $ 20,000 RowMaster $ 120,000 50,000 $ 70,000 50,000 $ 20,000