Solve the problem below and show steps:

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 Dollars % Dollars $ 420,000 100.00% $ 260,000 100% 204,000 48.57 156,000 60 $ 216,000 51.43% $ 104,000 40% 131,400 31.29 54,600 21 $ 84,600 20.14% $ 49,400 198 40,000 9.52 $ 44,600 10.62% Division 2 Dollars $ 160,000 100% 48,000 30 $ 112,000 70% 76,800 48 $ 35, 200 228 Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division Division 1 Dollars $ 260,000 1008 156,000 60 $ 104,000 40% 36,400 14 $ 67,600 268 18, 200 $ 49,400 19% Profit Centers Product A Product B Dollars Dollars $ 104,000 100.00% $ 156,000 100.008 46,800 45.00 109,200 70.00 $ 57,200 55.00 $ 46,800 30.00% 10,920 10.50 25,480 16.33 $ 46,280 44.508 $ 21,320 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 ncrease 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 ncrease to $180,000