Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March. Investment Centers Sales Variable costs Butterfield, Inc Dollars $ 420,000 204,000 % 100.00% 48.57 Division 1 Dollars $260,000 156,000 % Division 2 Dollars 100% $ 160,000 100% 60 Contribution margin Fixed costs traceable to divisions $ 216,000 131,400 51.43% $ 104,000 31.29 Division responsibility margin Common fixed costs Income from operations $ 84,600 50,000 54,600 20.14% $ 49,400 48,000 40% $112,000 21 30 70% 76,800 48 19% $35,200 22% 11.90 $ 34,600 8.24% Profit Centers Division 1 Product A % Dollars Product B Dollars % $ 67,600 18,200 100% $ 104,000 100.00% 60 46,800 45.00 109,200 40% $ 57,200 55.00% $ 46,800 14 10,920 10.50 25,480 44.50% $ 21,320) 26% $ 46,280 7 $ 156,000 100.00% 70.00 30.00% 16.33 13.67% $ 49,400 19% Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division Dollars $ 260,000 156,000 $ 104,000 36,400 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 $180,000. Complete this question by entering your answers in the tabs below. Required A Required E