Riley Corporation has two divisions: the Football Division and Baseball Division. Revenue and cost information relating to the products is as follows:

	Football Div	Baseball Div
Units Sold	40,000	50,000
Selling Price per unit	$ 25.00	$ 17.00
Variable Product Costs per unit	$ 12.00	$ 9.00
Variable Selling Costs per unit	$ 3.50	$ 2.50
Total Traceable Fixed Costs	$ 65,000	$ 85,000

Common fixed costs for Riley are made up of $40,000 in headquarters rent, $45,000 in insurance, and $108,000 in other administrative expenses.

Required: Prepare a contribution format income statement segmented by division:

	Total	Football Div	Baseball Div
Sales
Variable Costs
Contribution Margin
Traceable Fixed Costs
Segment Margin
Common Fixed Costs
Net Operating Income

What is the company’s overall break-even in sales dollars (fixed costs divided by CM%)?

If Riley spent $100,000 on Baseball Division advertising to increase total sales in the Baseball Division by 30%, how much would that change the segment margin for the Baseball Division?