Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March. Investment Centers Division 1 Dollars Division 2 Dollars Butterfield, Inc Dollars $420,000 207,000 $ 213,000 128,700 Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common fixed costs Income from operations 100% 30 106.00% $270,000 162,000 50.71%108,000 56,700 20.07% $ 51,300 100% $150,000 45,000 40% 105,000 72,000 19% 33,000 49.29 29 60 %. 70% 48 22% 30.64 21 $ 84,300 40,000 9.52 $ 44, 300 10.55% Profit Centers Product A Division 1 Product B Dollars $ 270,000 162,000 $ 108,000 37,800 $ 70,200 18,900 $ 51,300 Dollars $. Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division 100 . 00% 45.00 5500% 10.50 44.50% Dollars 162,000 113,400 48, 600 106.00% 70.00 30.00% 16.33 13. 67% 100% 60 108,000 48 , 600 40% $ 59,400 11,340 26% $ 48,060 $. $ 14 26,460 10:3 22,140 19% Required a. 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 $30,000 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 $170,000