Please help me with this accounting assignment........

Finely Segmented Income Statements Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Divisions Sal es Total Company 4,63 R 7,50 0 Cloth 2,65 R 0,00 0 Leather 1,98 R 7,50 0 Vari able expe nses 2,17 1,72 5 1,12 0,00 0 1,05 1,72 5 Con tribut ion marg in 2,46 5,77 5 1,53 0,00 0 935, 775 805, 000 460, 000 345, 000 603, 000 370, 000 233, 000 261, 000 131, 000 130, 000 Tra ceabl e fixed expe nses: A dvert ising S ellin g and admi nistr ative D eprec iatio n Tot al trace able fixed expe nses 1,66 9,00 0 Div ision al segm ent marg in 796, 775 Co mmo n fixed expe nses 406, 000 Ope ratin g R inco me 390, 775 961, 000 R 569, 000 708, 000 R 227, 775 Top management can't understand why the Leather Division has such a low segment margin when its sales are only 25% less than sales in the Cloth Division. As one step in isolating the problem, management has directed that the Leather Division be further segmented into product lines. The following information is available on the product lines in the Leather Division: Leather Division Product Lines Sales Traceable fixed expenses: Advertising Selling and administrative Depreciation Variable expenses as a percentage of sales Garments Shoes Handbags R660,000 R810,000 R517,500 R 96,000 R128,000 R121,000 R 46,000 R 51,000 R 65,000 R 35,000 R 72,000 R 23,000 70% 30% 67% Analysis shows that R71,000 of the Leather Division's selling and administrative expenses are common to the product lines. Required: 1. Prepare a contribution format segmented income statement for the Leather Division, with segments defined as product lines. 2. Management is surprised by the handbag product line's poor showing and would like to have the product line segmented by market. The following information is available about the markets in which the handbag line is sold: Handbag Markets Sales Traceable fixed expenses: Advertising Domestic Foreign R360,000 R157,500 R 56,000 R 65,000 Variable expenses as a percentage of sales 60% 83% All of the handbag product line's selling and administrative expenses and depreciation are common to the markets in which the product is sold. Prepare a contribution format segmented income statement for the handbag product line with segments defined as markets. 3. Refer to the statement prepared in (1) above. The sales manager wants to run a special promotional campaign on one of the product lines over the next month. A marketing study indicates that such a campaign would increase sales of the Garments product line by R216,000 or sales of the shoes product line by R161,000. The campaign would cost R31,000. a. Compute the increased operating income for these product lines for the expected increased sales. b Based on the above results, which product line should be . chosen? Garments Shoes