Investment Centers Butterfield, Inc Division 1 Division 2 Dollars Dollars Dollars Sales $ 460, 000 100.008 $ 320,000 1008 $ 140,000 1008 Variable costs 234, 000 50. 87 192,000 60 42,000 30 Contribution margin 226, 000 19 . 130 $ 128, 000 403 $ 98,000 708 Fixed costs traceable to divisions 134, 400 29. 22 67,200 21 67,200 48 Division responsibility margin $ 91,600 19.910 60, 800 198 $ 30,800 228 Common fixed costs 40, 000 8.70 Income from operations 51, 600 11 . 220 Profit Centers Division 1 Product A Product B Dollars Dollars Dollars Sales $ 320, 000 1008 $ 128,000 100 . 008 $ 192, 000 100.008 Variable costs 192, 000 60 57,600 45 .00 134, 400 70.00 Contribution margin $ 128, 000 408 $ 70,400 55 .008 $ 57, 600 30.008 Fixed costs traceable to products 44, 800 13, 440 10.50 31, 360 16.33 Product responsibility margin 83, 200 56,960 44 . 50% 26, 240 13 . 678 Common fixed costs 22, 400 Responsibility margin for division $ 60, 800 19% Required: a. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $5,000 per month and is expected to increase the sales of whichever product is advertised by $40,000 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 $160,000. 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 $160,000. (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 $ 620,000 100.00 % $ 320,000 100.00 % $ 300,000 100.00 % Variable costs 282,000 45.48 192,000 60.00 90,000 30.00 % Contribution margin $ 338,000 54.52 % 128,000 40.00 % 210,000 70.00% Fixed costs traceable to divisions 134,400 21.68 % 67,200 21.00 % 67,200 32.00 Division responsibility margin $ 203,600 32.84 % $ 60,80 19.00% $ 142,800 38.00% Common cost 40,000 6.45% ncome from operations $ 163,60 26.39 %