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Responsibility Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March. Investment Centers Butterfield, Inc Dollars Division 1 Dollars.
Responsibility Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March. Investment Centers Butterfield, Inc Dollars Division 1 Dollars. % Sales Variable costs $ 500,000 252,000 50.40 Contribution margin $ 248,000 Fixed costs traceable to divisions 148,200 Division responsibility margin Common fixed costs Income from operations $ 99,800 50,000 % 100.00% $ 340,000 100% $ 160,000 204,000 49.60 % $ 136,000 29.64 71,400 19.96% $ 64,600 Division 2 Dollars % 100% 60 48,000 40 % $ 112,000 30 70% 21 19% $ 76,800 35,200 22% 48 10.00 $ 49,800 9.96% Profit Centers Division 1 Product A Product B Dollars % Dollars 100% 136,000 % Dollars 100.00% $ 204,000 % 100.00% 60 61,200 45.00 40% $ 74,800 14 14,280 $ 88,400 26% $ 60,520 142,800 55.00% $ 61,200 10.50 33,320 44.50% $ 27,880 70.00 30.00% 16.33 13.67% 23,800 7 $ 64,600 19% Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division $ 340,000 204,000 $ 136,000 47,600 Required: a. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $ per month and is expected to increase the sales of whichever product is advertised by $30,000 per month. Compute the expe 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 increase to $180,000. Complete this question by entering your answers in the tabs below. Required A Required E
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