Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March. 1-** 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 $ Dollars $ Dollars $ $ 420,000 100.00% $ 250,000 1008 $ 170,000 100% 201,000 47.86 150,000 60 51,000 30 $ 219,000 52.14% $ 100,000 40% $ 119,000 70% 134,100 31.93 52,500 21_ 81,600 48 $ 84,900 20.21% $ 47,500 198 $ 37,400 22% 40,000 9.52 $ 44,900 10.69% Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division Division 1 Dollars $ 250,000 100% 150,000 60 $ 100,000 40% 35,000 14 $ 65,000 26% 17,500 $ 47,500 19% Profit Centers Product A Product B Dollars Dollars $ 100,000 100.00% $ 150,000 100.00% 45,000 45.00 105,000 70.00 $ 55,000 55.00% $ 45,000 30.008 10,500 10.50 24,500 16.33 $ 44,500 44.508 $ 20,500 13.67% 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 $190,000. 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. Expected Change in Responsibility Margin Product A Product B Prepare an income statement for Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $190,000. (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. Division 1 Dollars Percent Dollars Percent Division 2 Dollars Percent Sales % Variable costs $ 0 0.00% $ 0 0.00% $ 0 0.00% Contribution margin Fixed costs traceable to divisions Division responsibility margin Common costs Income from operations $ 0 0.00% 0 0.00% $ 0 0.00% $ 0 0.00%