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i only need part e, thanks! Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March. Sales Variable costs Contribution
i only need part e, thanks!
Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March. Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common fixed costs Income from operations Investment Centers Butterfield, Inc Division 1 Division 2 Dollars Dollars Dollars 8 $ 500,000 100.008 $ 330,000 1008 $ 170,000 1008 249,000 49.80 198,000 60 51,000 30 $ 251,000 50.20 $ 132,000 40% $ 119,000 70% 150,900 30.18 69, 300 21 81,600 $ 100,100 20.02$ 62,700 198 $ 37,400 228 40,000 8.00 $ 60,100 12.02% Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division Profit Centers Division 1 Product A Product B Dollars % Dollars Dollars $ 330,000 100% $ 132,000 100.008 $ 198,000 100.008 198,000 60 59,400 45.00 138,600 70.00 $ 132,000 40% $ 72,600 55.00 $ 59,400 30.000 46,200 14 13,860 10.50 32,340 16.33 $ 85,800 268 $ 58,740 44.508 $ 27,060 13.67% 23,100 7 $ 62,700 198 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 Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $190,000 Complete this question by entering your answers in the tabs below. Required A Required E e. Prepare an income statement for Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $190,000. Complete this question by entering your answers in the tabs below. Required A Required E Prepare an income statement for Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $190,000. (Round your percentage answers to 2 decimal place (i.e. 0.1234 should be considered as 12.34%).) BUTTERFIELD, INC. Responsibility Income Statement For April Butterfield, Inc. Division 1 Division 2 Dollars Percent Dollars Percent Dollars Percent Sales % % % Variable costs % % % Contribution margin 0.00 % $ 0 0.00 % $ 0.00% Fixed costs traceable to divisions % % % Division responsibility margin $ 0.00% $ 0 0.00% $ 0 0.00% Common costs % Income from operations S 0 0.00% $ 0 0 0Step by Step Solution
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