Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 22.5A Analysis responsibility IncomeStatement Check my work Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility
Problem 22.5A Analysis responsibility IncomeStatement Check my work Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division Division 1 Dollars $ 340,000 100% 60 $ 136,000 40% 47,600 14 $ 88,400 268 23, 800 $ 64,600 Profit Centers Product A Product B Dollars Dollars $ 136,000 100.00% $ 204,000 100.00% 61,200 45.00 142,800 70.00 $ 74,800 55.00$ $ 61,200 30.008 14,280 10.50 33,320 16.33 $ 60,520 44.50# $ 27,880 13.678 Required: a. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $4,000 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 $140,000. Complete this question by entering your answers in the tabs below. Required A Required E The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cc &A Ann nar month and le avnartadt Inrrasca tha polne of whic of whichavandert le dertleed huen non nar month Com Jyment i Us Principles of Accounting Il Saved Help Save & Exit Submit Check my work e. Prepare an income statement for Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $140,000. Complete this question by entering your answers in the tabs below. Required A Required E The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cc $4,000 per month and is expected to increase the sales of whichever product is advertised by $30,000 per month. Com the expected increase in the responsibility margin of Division 1 assuming that (1) product A is advertised and (2) produ advertised. Expected Change in Responsibility Margin Product A Product B Help Save & Exit Submit Check my work Required A Required E Prepare an income statement for Butterfield, Inc., by division, under the assumption that in April the monthly sales in D $140.000. (Round your percentage answers to 2 decimal place (le. 0.1234 should be considered as 12.34%). BUTTERFIELD, INC. Responsibility Income Statement For April Butterfield, Inc. Division 1 Dollars Percent Dollars Percent Division 2 Dollars Percent
Problem 22.5A Analysis responsibility IncomeStatement
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started