Shown as follows are responsibility income statements for Butterfield, Incorporated, for the month of March: es Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common fixed costs Income from operations Butterfield, Incorporated Dollars $ 480,000 234,000 Investment Centers Division 1 100.00% 48.75 $ 246,000 149,400 $ 96,600 50,000 $ 46,600 51.258 31.13 Dollars $ 300,000 180,000 $ 120,000 100% 60 Division 2 Dollars $ 180,000 54,000 100% 30 408 20.13% 63,000 $ 57,000 21 198 $ 126,000 86,400 $ 39,600 708 48 228 10.42 9.71% Profit Centers Division 1 Product A Product B Dollars Dollars 8 Dollars Sales. Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs $ 300,000 180,000 $ 120,000 100% $ 120,000 60 40% Responsibility margin for division 42,000 $ 78,000 21,000 $ 57,000 14 268 7 199 54,000 $ 66,000 12,600 $ 53,400 100.00% 45.00 55.00% 10.50 44.50% $ 180,000 100.00% 126,000 70.00 $ 54,000 29,400 30.00% 16.33 $ 24,600 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 $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, Incorporated, by division, under the assumption that in April the monthly sales in Division 2 increase to $200,000. Content M Question 2 - HW22A - Connect Course Hero ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fconnect%252Fltiwrappe... C M Gmail YouTube HW22A i Maps GE News Translate Saved 2 33.33 points 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, Incorporated, by division, under the assumption that in April the monthly sales in Division 2 increase to $200,000. eBook Complete this question by entering your answers in the tabs below. Print References Mc Graw Hill 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. Product A Product B Expected Change in Responsibility Margin < Required A Required E > < Prev 2 of 3 Next > Help Save & Exit Submit 2 Check my work L All Bookmarks Content M Question 2 - HW22A - Connect Course Hero ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fconnect%252Fltiwrappe... M Gmail YouTube HW22A i Maps GE News Translate Saved 2 33.33 points 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, Incorporated, by division, under the assumption that in April the monthly sales in Division 2 increase to $200,000. eBook Complete this question by entering your answers in the tabs below. Print References Required A Required E Mc Graw Hill Help Save & Exit Submit 2 Check my work Prepare an income statement for Butterfield, Incorporated, by division, under the assumption that in April the monthly sales in Division 2 increase to $200,000. Note: Round your percentage answers to 2 decimal places (i.e. 0.1234 should be considered as 12.34%). BUTTERFIELD, INCORPORATED Income Statement by Divisions For the Month Ended April 30 Butterfield, Incorporated Division 1 Division 2 Dollars Percent Dollars Percent Dollars Percent Sales % % % Variable costs % % % Contribution margin $ 0 0.00 % $ 0 0.00 % EA $ 0 0.00% Fixed costs traceable to divisions % % Division responsibility margin $ 0 0.00 % $ 0 0.00 % $ 0 0.00 % Common costs % Income from operations $ 0 0.00 % < Prev 2 of 3 Next > L All Bookmarks