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Question 4 Segmented Income Statement (14 Marks) Armadale Company manufactures and sells three video game consoles: The Alpha X, the Beta Y, and the Gamma

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Question 4 Segmented Income Statement (14 Marks) Armadale Company manufactures and sells three video game consoles: The Alpha X, the Beta Y, and the Gamma Z game systems. Information for each product is shown below: $ Sales price Sales volume (units) Variable cost per unit Annual traceable fixed expenses Gamma Alpha Beta 100.00 S 80.00 $ 50.00 15,000 5,000 2,500 60.00 $ 40.00 $ 15.00 90,000 $ 210,000 S 50,000 $ $ Total Fixed Expenses for Armadale Company $450,000 Gamma Alpha Beta Total WORKSPACE ONLY: NO MARKS FOR YELLOW AREA Sales Variable costs Contribution Margin Traceable fixed expenses Segment Margin Common fixed expenses Net Operating Income Answer the following questions Part 2. What is the serviton maren ratio of each product line marke 4. Which segment should be dropped il any based on quantitative analysis alone? (1 marke Ah Alpha Beta Computer margin certo rental Gemme sont segments should be What is the men in den elech production market What we the common feed expenses of the company Garum Alpha Beta SCROLL DOWN FOR PARTE MAT: The sales manager of Armadale Company thinks that sales of a would increase if they spend funds on an advertising campaign Asuming his prediction is curt, clate the following 4 marks) cif the company canelone more unit of product, which system should they all to medias income? [1 mark) Increase in Beta 5 50.000 Amount setting 40.000 **SCROLL DOWN FOR PART B** PART B: The sales manager of Armadale Company thinks that sales of Beta would increase if they spend funds on an advertising campaign. Assuming his prediction is accurate, calculate the following: (4 marks) Increase in Beta sales $ 50,000 Amount spent on advertising $ 40,000 Increase in income Increase in expenses Net Increase (decrease) in income Would you recommend that the sales manager proceed with the advertising campaign? (Yes or No)

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