The Hypothetical Ltd has following total operating results for the first half of current year: Sales revenue Less variable costs Contribution Less fixed costs Net income $56,00,000 37,20,000 18,80,000 10,00,000 8,80,000 The following additional information concerning the performance of each of the firm's three operating departments has been provided: Departments A B C Sales revenue $ 24,00,000 $ 20,00,000 $12,00,000 Variable costs Direct fixed costs 16,80,000 3,20,000 12,00,000 8,40,000 2,80,000 2,00,000 1. Rank the three departments on the basis of their proportionate measure of relative profitability. 2. A proposal to increase advertising expenses by $ 1,23,200 is expected to generate a 10 per cent increase in sales in all three departments. Analyse the effect of this proposal on the firm as a whole and on each department. Assume that the cost of advertising will be allocated to divisions according to each division's percentage to sales, and is to be considered as an attributable fixed cost of each department.