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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

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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 $ 448, Bee 182.ee%$ 310,eee 18% $ 13e, eee 100% 225.ee 51.14 186.eee 39, eea 3e $215, e90 48.86% $ 124,828 42% 91, 80e 78% 127,5ee 28.98 65.lee 21 62.ee 48 $ 87, see 19.89% $ 58,982 19 $ 28,6ee 22% se, Bee 11.36 $ 37, see 8.52% Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility sargin Common fixed costs Responsibility margin for division Division 1 Dollars $ 310, eee 186, Bea $ 124,00 43,460 $ 89,600 21,700 $ 58,9ee Profit Centers Product A Product B Dollars Dollars 1085 $ 124, eee 100.00 $ 185,200 180.se be 55,800 45.ee 13e, zee 7e.ee 48% $ 68,2ee 55.00 $ 55, see 32.ee 14 13,020 1e.se 30, 380 16.33 26% $ 55,180 44.50 $ 25,420 13.67% 7 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 $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 $150,000 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 $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. Expected Change in Responsibility Margin Product A Products Required A Required E >

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