Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March

	Investment Centers
	Butterfield, Inc						Division 1						Division 2
	Dollars			%			Dollars			%			Dollars			%
Sales	$	400,000		100.00	%		$	260,000		100	%		$	140,000		100	%
Variable costs		198,000		49.50				156,000		60				42,000		30
Contribution margin	$	202,000		50.50	%		$	104,000		40	%		$	98,000		70	%
Fixed costs traceable to divisions		121,800		30.45				54,600		21				67,200		48
Division responsibility margin	$	80,200		20.05	%		$	49,400		19	%		$	30,800		22	%
Common fixed costs		50,000		12.50
Income from operations	$	30,200		7.55	%

	Profit Centers
	Division 1						Product A						Product B
	Dollars			%			Dollars			%			Dollars			%
Sales	$	260,000		100	%		$	104,000		100.00	%		$	156,000		100.00	%
Variable costs		156,000		60				46,800		45.00				109,200		70.00
Contribution margin	$	104,000		40	%		$	57,200		55.00	%		$	46,800		30.00	%
Fixed costs traceable to products		36,400		14				10,920		10.50				25,480		16.33
Product responsibility margin	$	67,600		26	%		$	46,280		44.50	%		$	21,320		13.67	%
Common fixed costs		18,200		7
Responsibility margin for division	$	49,400		19	%

e. Prepare an income statement for Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $160,000.

BUTTERFIELD, INC. Responsibility Income Statement