NEED BY 5:00 PM TODAY PLEASE HELP

Shown below are responsibility income statements for Butterfield, Inc., for the month of March.

	Investment Centers
	Butterfield, Inc						Division 1						Division 2
	Dollars			%			Dollars			%			Dollars			%
Sales	$	420,000		100.00	%		$	280,000		100	%		$	140,000		100	%
Variable costs		210,000		50.00				168,000		60				42,000		30
Contribution margin	$	210,000		50.00	%		$	112,000		40	%		$	98,000		70	%
Fixed costs traceable to divisions		126,000		30.00				58,800		21				67,200		48
Division responsibility margin	$	84,000		20.00	%		$	53,200		19	%		$	30,800		22	%
Common fixed costs		50,000		11.90
Income from operations	$	34,000		8.10	%

	Profit Centers
	Division 1						Product A						Product B
	Dollars			%			Dollars			%			Dollars			%
Sales	$	280,000		100	%		$	112,000		100.00	%		$	168,000		100.00	%
Variable costs		168,000		60				50,400		45.00				117,600		70.00
Contribution margin	$	112,000		40	%		$	61,600		55.00	%		$	50,400		30.00	%
Fixed costs traceable to products		39,200		14				11,760		10.50				27,440		16.33
Product responsibility margin	$	72,800		26	%		$	49,840		44.50	%		$	22,960		13.67	%
Common fixed costs		19,600		7
Responsibility margin for division	$	53,200		19	%

Instructions

a.

The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $3,000 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, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $160,000. (Round your percentage answers to 2 decimal place (i.e. 0.1234 should be considered as 12.34%).)