Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common fixed costs Income from operations $ 450,000 231,000 $ 219,000 129,600 $ 89,400 40,000 $ 49,400 Lotars 100.00% $ 320,00 51.33 192,000 48.67% $ 128,000 28.80 67,200 19.87% $ 60,800 8.89 10.98% UOLO 100% $ 130,000 6e 39,00 40% 5 91,600 21 62,400 19% $ 28,600 100% Be 70% 48 *22% Sales Variable costs Contribution margin =ixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division Profit Centers Division 1 Product A Product B Dollars % Dollars % Dollars $ 320,000 100% $ 128,000 100.00k $ 192,00 100.00% 192,000 60 57,600 45.ee 134,400 70.00 $ 128,000 40KS 70,400 55.00% 557,600 30.00% 44,300 14 13,440 10.5e 31,360 16.33 $ 83,200 26% 556,960 44.5ex $ 26,240 13.67% 22,400 7 $ 60,800 19% quired: he company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $4.00 month and is expected to increase the sales of whichever product is advertised by $40,000 per month Compute the expected ease in the responsibility margin of Division 1 assuming that (1) product A is advertised and (2) product B is advertised. repare an income statement for Butterfield, Inc, by division, under the assumption that in April the monthly sales in Division 2