Required A Required E Prepare an income statement for Butterfield, Inc., by division, under the assumption that in April the monthly sales in Division 2 $160,000. (Round your percentage answers to 2 decimal place (le. 0.1234 should be considered as 12.34%).) S450,000 BUTTERFIELD, INC. Responsibility Income Statement For April Butterfield, Inc. Division 1 Dollars Percent Dollars Percent $ 650,000 X 100.00 % 100.00% 300.000 46.15% 210.000 60.00 $ 350,000 53.85 % $ 140,000 40.00 % 140.700 21.65 % % 73,500 21.00% $ 209,300 32 20 % $ 66,500 19.00 % 50,000 7.69% $ 159,300 2451 9 >> Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common costs Income from operations >> * Division 2 Dollars Percent $ 300,000 100.00 90,000 $ 30.00 % $ 210,000 70.00 % 67 200 22.40 % $ 142.800 47.60 9 >>>> 19% $ 39,800 22% Division responsibility margin Common fixed costs Income from operations $ 97,300 50,000 $ 47,300 19.86% $ 66,500 10.20 9.65% Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division Profit Centers Division 1 Product A Products Dollars * Dollars Dollars % $ 350,000 100% $ 140,000 100.00% $ 210,000 100.des 210,000 60 63,000 45.00 147.000 70.ee $ 140,000 40 577,000 55.00% $ 63,000 30.00% 49,000 14 14,700 10.50 34,309 16.33 $ 91,000 2x $ 62.300 44.50% 5 28,780 13.67% 24,500 7 $ 66,500 19% Required: o. 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 $40,000 per month Compute the expected increase in the responsibility margin of Division 1 assuming that (1) product Als 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 Problem 22.5A Analysis of Responsibility Income Statements (LO22-3, LO22-4, LO22-5) Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March. Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common fixed costs Income from operations Investment Centers Butterfield, Inc Division 1 Division 2 Dollars Dollars % Dollars * $ 490,000 100.eex $ 350,000 100% $ 140,000 100% 252,000 51.43 210,000 60 42,000 30 $ 238,000 48.57% $ 140,000 4ex $ 98,000 70% 140,700 28.71 23,500 21 67,200 48 $ 97,300 19.81 $ 66,500 19% $ 39,800 50,000 10.20 $ 47,300 9.65% Sales Variable costs Contribution margin Division 1 Dollars $950,000 21e eco 5 140,000 100 60 435 Profit Centers Product 4 Product B Dollars Dollars $ 140,000 100.00 $ 210,000 100.00% 63.000 45.00 147.000 70.00 $ 77,000 55.00 $ 63,000 30.00%