Question: i need help with both parts EXERCISE 11-4 Working with a Segmented Income Statement [L01 @) Refer to the data in Exercise 11-3 Assume that
EXERCISE 11-4 Working with a Segmented Income Statement [L01 @) Refer to the data in Exercise 11-3 Assume that Vancouver's sales by major market are as follows: Vancouver 5600,000 100.0% 360.000 60 Market Construction Landscaping Clients Clients $400,000 100% 5200,000 100% 260.000 100.000 50 140.000 35 100.000 50 240,000 40 Sales Variable expenses Contribution margin Tractable fixed expenses Market segment margin Common fixed expenses not truceable to offices Office segment margin 12 52.000 72.000 168,000 _20.000 $120.000 28 30% $ 48,000 245 18.000 5150,000 25% The company would like to initiate an intensive advertising campaign in one of the two markets during the next month. The campaign would cost $8.000 Marketing studies indicate that such a campaign would increase sales in the construction market by $70,000 or increase sales in the landscaping market by $60.000 Required: Page 492 1. In which of the markets would you recommend that the company focus its advertising campaign? Show computations to support your answer. 2. In Exercise 11-30. Vancouver shows $90,000 in traceable fixed expenses. What happened to the 590,000 in this exercise
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