iii) The manager of District B would like to spend an extra Tk.25,000 next month in a special promotional campaign. If sales increase by Tk.100,000 as a result, would the expenditure be justified? No additional warehouse space would be required.

5) Assume that in (iii) above additional warehouse space is required, how should Division B manager be willing to pay for additional warehouse space to be indifferent on whether sales increase by Tk100 000 or do not increase by a Tk100 000.

6 ) Assume that sales and variable expenses increased by 50 %, the other expenses remain the same. How would it change the overall performance of the firm? Redo the overall segmented income statements

I need help for this question 5 and 6 only please

Total Company Districts Sales @ Tk.20 per unit Less cost of goods sold Tk.9 per unit Gross margin Tk.1,000,000 Tk.300,000Tk.500,000 Tk.200,000 90,000 450,000 135,000 225,000 550,000 165,000 275,000 10,000 Less operating expenses: Marketing expenses: Shipping Warehouse rent Sales commissions 51,250 80,000 60,000 30,000 75,000 115,000 411,250 11,250 24,000 18,000 12,000 20,000 34,500 119,750 25,000 40,000 30,000 10,000 25,000 57,500 187,500 15,000 16,000 12,000 8,000 30,000 23,000 104,000 Sales salaries District advertising National advertising Total marketing expenses Administrative expenses: 40,000 District management salaries Central office administrative expenses* 12,000 15,000 13,000 Total administrative expenses Total operating expenses Net operating income (loss) 20,000 33,000 137,000 Ik.(1250)IK.3.250 Ik.22.500 Ik.(27.000) 100,000 140,000 551,250 30,000 42,000 161750 50,000 65,000 252,500