Shown above are responsibility income statements for Roberts, Inc., for the month of March.

a.

The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $3,000 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.

Expected change in responsibility margin:

Product a:

Product b:

b.	Prepare an income statement for Roberts, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $170,000 Organize this income statement in the format illustrated above, including columns for percentages.