Question Four The following data has been extracted from the year-end reports of two subsidiaries of Company Z. Company X and Company Y. Company Company X $800,000 $56,000 2 Sales Operating income Average operating assets Margin Turnover Return on investment $125,000 4% 2 2 6 14% Required: a) Fill in the missing data on the above table. b) Comment on the results provided above. Are there any recommendations you can make to X or Y Relax Plus, a local Spa offering various services has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement below. Sales $750,000 Variable Expenses 294,000 Contribution Margin 456,000 Fixed Expenses 489.000 Operating Losses $133.000 In an effort to isolate the problem, the owner has asked for an income statement segmented by services provided. Accordingly, the Accounting Department has developed the following: Service Massage Hair Salon Nails Sales $200,000 $300,000 $250,000 Variable Expenses as a percentage of 52% 30% 40% sales Traceable fixed expenses $120,000 $165,000 $100,000 Required: a) Prepare a contribution format income statement segmented by service, as desired by the owner b) The company's sales manger believes that sales for Massages could increase by 15% if monthly advertising were increased by $25,000. Would you recommend the increased advertising? Show computations to support your answer. Focus 30