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Shown as follows are responsability income statements for Butterfield, Inc., for the month of March Sales Variable costs Contribution margin Fixed costs traceable to divisions
Shown as follows are responsability income statements for Butterfield, Inc., for the month of March
Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common fixed costs Income from operations Butterfield, Inc Division 1 Division 2 Dollars % Dollars % Dollars % $ 398,080 108.88% $ 268,888 100% $ 130,980 100% 195,000 50.oe 156, eee 68 39,000 30 $ 195,000 50.08% $ 104,80 48% $ 91,eee 70% 117,Bee 30.00 54,600 21 62,488 48 $ 78,000 20.09% $ 49,480 19% $ 28,600 22% 5e,eee 12.82 $ 28,888 7.18% Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division Profit Centers Division 1 Product A Product B Dollars % Dollars % Dollars % $ 268,000 100% $ 184, eee 108.88% $ 156,888 108.8% 156,980 68 46,880 45.00 109,280 79.00 $184,900 48% $ 57,280 55.88% $ 46,820 30.00% 36,480 14 18,920 19.50 25,480 16.33 $ 67,680 26% $ 46,280 44.50% $ 21,320 13.67% 18,200 7 $ 49,4ee 19% Required: 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 $40.000 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 $150,000 Complete this question by entering your answers in the tabs below. Required A Required E Prepare an income statement for Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $150,000. (Round your percentage answers to 2 decimal place (i.e. 0.1234 should be considered as 12.34%).) BUTTERFIELD, INC. Responsibility Income Statement For April Butterfield, Inc. Dollars Percent Dollars Division 1 Dollars Percent 96 Division 2 Percent 96 96 96 0.00% 96 0.00 96 S S 0 S 0 0.00% 96 S 0 S 0 0.00% S 0 0.00% 0.00% 96 S 0 0.00%Step by Step Solution
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