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