> Question 12 The Segmented Profit and Loss Statement for RMJ KidsRUs Ltd is presented below: Clothing Division Footwear Division Toys Division Total Company $615,200 Sales Revenue $425,000 $519,200 $1,559,400 Less: Variable Costs $256,500 $204,000 $270.500 $731,000 $358,700 $221,000 $248,700 $828,400 Contribution Margin Less: Traceable Fixed Costs $134,350 $355,400 $118,750 $102,304 $239,950 $118,700 $114,350 $473,000 Division Segment Margin Less: Common Fixed Costs $95,000 Net Profit $378,000 Fixed Costs $378,000 Net Profit The CEO is considering a special targeted social media marketing campaign which will cost $45,000 but only one division's products can be featured as part of the campaign. The company's marketing department advise that based on their projections, sales for the clothing, footwear and toys division would increase by 17%, 20% and 22% respectively, as a result of the campaign. Note that only one of these divisions will receive the revenue boost as a result of being featured in the marketing campaign. Required: a) Which division do you believe should be featured in the marketing campaign to maximise company profits? Support your answer with reasons and calculations. (3 marks) Important: Round to the nearest 2 decimal places for numbers used in calculations. b) What would the total company net profit become if this division was fastnader Required: a) Which division do you believe should be featured in the marketing campaign to maximise company profits? Support your answer with reasons and calculations. (3 marks) Important: Round to the nearest 2 decimal places for numbers used in calculations. b) What would the total company net profit become if this division was featured? (1 mark) c) What other factors should the CEO take into consideration in making this decision? (1 mark) Note: Show all working out and clearly distinguish between your responses to part a), b) and c) Relevant Formula Contribution Margin Ratio = Contribution Margin / Sales Segment Margin Ratio = Segment Margin / Sales Residual Income = Net Profit - (Net Operating Assets x Minimum Rate of Return)