Myneed Company Income Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses Operating Income RM'000 1,500 672 828 756 72 Management is disappointed with the company's performance and is wondering what can be done to improve profits. By examining sales and cost records, you have determined the company is divided into two product divisions - Household Division and Office Division. Additional information: 1. The Household Division recorded RM600,000 in sales during June and the remaining was recorded in the Office Division. 2. Variable expenses are 52% of the selling price for Household Division and 40% for Office Division. 3. Fixed expenses of RM240,000 and RM216,000 are traceable to the Household and Office divisions, respectively. The rest of the fixed expenses are common to the two divisions. Required: a) Prepare contribution format segmented income statement showing the total company segmented by product divisions. (9 marks) b) Myneed would like to initiate an intensive advertising campaign for one of the divisions next month. The campaign would cost RM5,000. Marketing studies indicate that such a campaign would increase both sales in Household and Office Division markets by RM35,000. In which product division should the company focus its advertising campaign? Show computations to support your answer. (6 marks)