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Required: a. The company plans to initiate an advertising campaign for one of the two products in Division 1 . The campaign would cost $2,000
Required: a. The company plans to initiate an advertising campaign for one of the two products in Division 1 . The campaign would cost $2,000 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 $200,000. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $2,000 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. Prepare an income statement ror Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $200,000. (Round your percentage answers to 2 decimal place (i.e. 0.1234 should be considered as 12.34% ).)
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