Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March 30 Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common fixed costs Income from operations Investment Centers Butterfield, Inc Division 1 Division 2 Dollars G Dollars % Dollars $ 490,000 100.00% $ 350,000 100% $ 140,000 100% 252,000 51.43 210,000 60 42,000 $ 238,000 48.57% $ 140,000 40% $ 98,000 70% 140,700 28.71 73,500 21 67,200 48 $ 97,300 19.86% $ 66,500 19% $ 30,800 22% 50,000 10.20 $ 47,300 9.65% ho Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Comition fixed costs Responsibility margin for division Profit Centers Division 1 Product A Product B Dollars 3 Dollars Dollars $ 350,000 100% $ 140,000 100.00% $ 219, eee 100.00% 218, 50 63,eee 45.00 147,000 70.00 $ 140,000 40% $ 27,000 55.00% 5 63,000 30.00% 49,000 14 14,790 12.50 34,380 16.33 $ $1,600 26% $ 62,328 44.50 $ 28,700 13.675 24,500 7 $ 68,500 195 Required: o. The company plans to initiate an advertising campaign for one of the two products in Division 1 The campaign would cost $5,000 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 Als 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 $160,000 Complete this question by entering your answers in the tabs below. Required A Required The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $5,000 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. Expected Change in Responsibility Margin Product A Product B 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 $160,000. (Round your percentage answers to 2 decimal place (1.0.0.1234 should be considered as 12.34%)) Dollars Division 2 Percent % % BUTTERFIELD, INC. Responsibility Income Statement For April Butterfield, Inc. Division 1 Dollars Percent Dollars Percent % % %6 % $ 0 0.00% $ 0 0.00 % % % $ 0 0.00% 5 0 0.00% % s 0 0.00% % $ 0 0.00% % 0.00% $ 0