Problem $22\mathrm{.}5$A $($Algo$)$ Analysis of Responsibility Income Statements $($LO$22-3,$ LO$22-4,$ LO$22-5)$

Shown as follows are responsibility income statements for Butterfield, Incorporated, for the month of March:

Required:

a$.$ The company plans to initiate an advertising campaign for one of the two products in Division $1.$ The campaign would cost $$5,000$

per month and is expected to increase the sales of whichever product is advertised by $$30,000$ 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, Incorporated, by division, under the assumption that in April the monthly sales in

Division $2$ increase to $$190,000.$