Problem 22.5A Butterfield, Inc.

Instructions a-e

linstructions The centuyips would cout 510000 per month and is expeced to increase the sales of whickere ity. To inctease sales of either prodact, the conripany mint increace mamafacturing tacilinio, weich moans an iscteace is traceible fived coist in appentimate proportion to the expected increace at wits is tha case, which prodest lite would yoa reccenmend espasiting? Fypliat c. The itcome stancment for Divition 1 ioclades $21,000 in centeton fixed cocs, What buppeat 4. Auank that in April the toonelly ules in Dhvisioa 2 increase to 5200000 . Cospete the eppected effect of this change on the operating inccene of the coerpany (assume to otht thampes in tevenue ar onst bel vine? ByWiz, her, is a smill masufacturer of poolessional frthing equipenees. The coespuity has roo diviciaces the mod division and the teed civision. Date for the towth of Jansary arn shown Instruetions The campaign would cost $10.000 per nsonth and is exnected to iricrease the siles atavis product is advertived by $30000 per month. Compete the expected increace in the ropert margin of Division 1 assuming that (1) peodact A is advertised and (2) proekct B is atoution b. Assame that the sales of both products by Division 1 are equal to total manuafactariat are ity. To increase sales of either product, the company must incresse mamufactaritg ficlu which means an increase in traceable fixed costs in approximate propoctice 10 the coriti c. The income statement for Division 1 includes $21.000 in common fixed coss. W3athe? to these frxed coses in the itcome statement for Butterfield, lnc.? d. Assume that is April the monthly sales in Division 2 increase to 5200 .000. Cuct expected effect of this change on the operating income of the company (astare of if changes in tevenac or cost behaviof). c. Prepare an income safernent for Butterfield. Inc. by thision. under the assumpos topl part d. Organize this income statement in the format illistrated, including colurens for perad lint FlyWiz, Inc, is a small manufacturer of professional. fishing equipment. The congring for divisions-the rod division and the reel division. Data for the month of January ase tave linstructions The centuyips would cout 510000 per month and is expeced to increase the sales of whickere ity. To inctease sales of either prodact, the conripany mint increace mamafacturing tacilinio, weich moans an iscteace is traceible fived coist in appentimate proportion to the expected increace at wits is tha case, which prodest lite would yoa reccenmend espasiting? Fypliat c. The itcome stancment for Divition 1 ioclades $21,000 in centeton fixed cocs, What buppeat 4. Auank that in April the toonelly ules in Dhvisioa 2 increase to 5200000 . Cospete the eppected effect of this change on the operating inccene of the coerpany (assume to otht thampes in tevenue ar onst bel vine? ByWiz, her, is a smill masufacturer of poolessional frthing equipenees. The coespuity has roo diviciaces the mod division and the teed civision. Date for the towth of Jansary arn shown Instruetions The campaign would cost $10.000 per nsonth and is exnected to iricrease the siles atavis product is advertived by $30000 per month. Compete the expected increace in the ropert margin of Division 1 assuming that (1) peodact A is advertised and (2) proekct B is atoution b. Assame that the sales of both products by Division 1 are equal to total manuafactariat are ity. To increase sales of either product, the company must incresse mamufactaritg ficlu which means an increase in traceable fixed costs in approximate propoctice 10 the coriti c. The income statement for Division 1 includes $21.000 in common fixed coss. W3athe? to these frxed coses in the itcome statement for Butterfield, lnc.? d. Assume that is April the monthly sales in Division 2 increase to 5200 .000. Cuct expected effect of this change on the operating income of the company (astare of if changes in tevenac or cost behaviof). c. Prepare an income safernent for Butterfield. Inc. by thision. under the assumpos topl part d. Organize this income statement in the format illistrated, including colurens for perad lint FlyWiz, Inc, is a small manufacturer of professional. fishing equipment. The congring for divisions-the rod division and the reel division. Data for the month of January ase tave