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

Shown as follows are responsibility 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 Investment Centers Butterfield, Inc Division 1 Division 2 Dollars Dollars Dollars $ 430,000 100.00% $ 310,000 100% $ 120,000 100% 222,000 51.63 186,000 60 36,000 30 $ 208,000 48.37% $ 124,000 40% $ 84,000 70% 122,700 28.53 65,100 21 57,600 48 $ 85,300 19.84% $ 58,900 19% $ 26,400 22% 40,000 9.30 $ 45,300 10.53% 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 $ 310,000 100% $ 124,000 100.00% $ 186,000 100.00% 186,000 60 55,800 45.00 130,200 70.00 $ 124,000 40% $ 68,200 55.00% $ 55,800 30.00% 43,400 14 13,020 10.50 30,380 16.33 $ 80,600 26% $ 55,180 44.50% $ 25,420 13.67% 21,700 7 $ 58,900 19% Required: a. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $2,000 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 $140,000. Complete this question by entering your answers in the tabs below. Required A Required E The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $2,000 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 $140,000. (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 % % % % % % % % % % % % % % % % %