HELP CENTER Pathp QUESTION 13 Words Question 3 (18 points). Koff Corporation has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period: Garden Division Farm Division Sales S163.000 S102,000 Variable expenses $63,570 $41.820 Traceable fixed expenses $68,000 $42.000 In addition, 20% of Koff's fixed expenses are not segment-specific, 1. Please prepare the contribution format income statement for Koff Corporation at both firm level and segment level. (4 points) 2. For the firm to achieve a profit of $35,500, what are the necessary sales dollars to be generated by the two divisions? Round your final answers to two decimal places. (6 points) 3. What are the potential reasons that render your analysis in part 2 invalid? Hint: Reliability of CVP assumptions. (3 points) 4. Refer to the original data. Koff is considering whether to expand the Garden division, which may have the following impacts: Increase advertisement expenses for garden goods by S6,000. . Increase division sales by 40%. Allocate 15% of common resources to support the development of garden goods, without disturbing any other operations of the fimm. Hire more experienced workers to take care of the gardens, decreasing the division's contribution margin ratio to 48%. Should Koff adopt this policy? What is the net effect of this policy on Koff's profit? (5 points) TT T Arial 3 (12) TEE 9 PIX