Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March. Sales...

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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 Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division Butterfield, Inc Dollars $ 410,000 207,000 $ 203,000 121,200 $ 81,800 50,000 $ 31,800 Investment Centers Division 1 Division 2 8 Dollars 8 Dollars 100.00% $ 280,000 100% $ 130,000 50.49 168,000 60 39,000 49.51% $ 112,000 40% $ 91,000 29.56 58,800 21 62,400 19.95% $ 53,200 19% $ 28,600 12.20 7.76% Division 1 Dollars $ 280,000 168,000 $ 112,000 39,200 $ 72,800 19,600 $ 53,200 Profit Centers Product A Dollars 8 8 100% $ 112,000 100.00% 60 50,400 40% $ 61,600 14 11,760 26% $ 49,840 7 19% 100% 30 70% 48 22% Product B Dollars $ 168,000 45.00 117,600 55.00% $ 50,400 10.50 27,440 44.50% $ 22,960 8 100.00% 70.00 30.00% 16.33 13.67% Required: a. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $3,000 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, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $150,000. Complete this question by entering your answers in the tabs below. + Required A Required E Answer is not complete. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $3,000 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 advertised. Product A Product B Expected Change in Responsibility Margin Complete this question by entering your answers in the tabs below. 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 increase to $150,000. (Round your percentage answers to 2 decimal place (i.e. 0.1234 should be considered as 12.34%).) Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common costs Income from operations ✓ Butterfield, Inc. Dollars $430,000 ✓ $223,000 126,600 $ 96,400 BUTTERFIELD, INC. Responsibility Income Statement For April 207,000 x 40,000 X $ 56,400 Percent 0.00 0.00 0.00 % % % % % % % Dollars $ $ < Required A Division 1 0 0 Percent 0.00 0.00 % % % % % Required E Dollars $ $ 0 0 Division 2 Percent 0.00 0.00 % % % % % 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 Sales Variable costs Contribution margin Fixed costs traceable to products Product responsibility margin Common fixed costs Responsibility margin for division Butterfield, Inc Dollars $ 410,000 207,000 $ 203,000 121,200 $ 81,800 50,000 $ 31,800 Investment Centers Division 1 Division 2 8 Dollars 8 Dollars 100.00% $ 280,000 100% $ 130,000 50.49 168,000 60 39,000 49.51% $ 112,000 40% $ 91,000 29.56 58,800 21 62,400 19.95% $ 53,200 19% $ 28,600 12.20 7.76% Division 1 Dollars $ 280,000 168,000 $ 112,000 39,200 $ 72,800 19,600 $ 53,200 Profit Centers Product A Dollars 8 8 100% $ 112,000 100.00% 60 50,400 40% $ 61,600 14 11,760 26% $ 49,840 7 19% 100% 30 70% 48 22% Product B Dollars $ 168,000 45.00 117,600 55.00% $ 50,400 10.50 27,440 44.50% $ 22,960 8 100.00% 70.00 30.00% 16.33 13.67% Required: a. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $3,000 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, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $150,000. Complete this question by entering your answers in the tabs below. + Required A Required E Answer is not complete. The company plans to initiate an advertising campaign for one of the two products in Division 1. The campaign would cost $3,000 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 advertised. Product A Product B Expected Change in Responsibility Margin Complete this question by entering your answers in the tabs below. 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 increase to $150,000. (Round your percentage answers to 2 decimal place (i.e. 0.1234 should be considered as 12.34%).) Sales Variable costs Contribution margin Fixed costs traceable to divisions Division responsibility margin Common costs Income from operations ✓ Butterfield, Inc. Dollars $430,000 ✓ $223,000 126,600 $ 96,400 BUTTERFIELD, INC. Responsibility Income Statement For April 207,000 x 40,000 X $ 56,400 Percent 0.00 0.00 0.00 % % % % % % % Dollars $ $ < Required A Division 1 0 0 Percent 0.00 0.00 % % % % % Required E Dollars $ $ 0 0 Division 2 Percent 0.00 0.00 % % % % %

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ANSWER a Expected increase in responsibility margin of Division 1 If product A is advertised Con... View the full answer