Shown below are responsibility income statements for Roberts, Inc., for the month of March. Investment Centers Roberts, Inc Division 1 Division 2 Dollars % Dollars % Dollars % Sales $ 430,000 100.00 % $ 280,000 100 % $ 150,000 100 % Variable costs 213,000 49.53 168,000 60 45,000 30 Contribution margin $ 217,000 50.47 % $ 112,000 40 % $ 105,000 70 % Fixed costs traceable to divisions 130,800 30.42 58,800 21 72,000 48 Division responsibility margin $ 86,200 20.05 % $ 53,200 19 % $ 33,000 22 % Common fixed costs 50,000 11.63 Income from operations $ 36,200 8.42 % Profit Centers Division 1 Product A Product B Dollars % Dollars % Dollars % Sales $ 280,000 100 % $ 112,000 100.00 % $ 168,000 100.00 % Variable costs 168,000 60 50,400 45.00 117,600 70.00 Contribution margin $ 112,000 40 % $ 61,600 55.00 % $ 50,400 30.00 % Fixed costs traceable to products 39,200 14 11,760 10.50 27,440 16.33 Product responsibility margin $ 72,800 26 % $ 49,840 44.50 % $ 22,960 13.67 % Common fixed costs 19,600 7 Responsibility margin for division $ 53,200 19 % Instructionsa. 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 $40,000 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.Expected change in responsibility margin Product A $ Product B $ e. Prepare an income statement for Roberts, Inc., by division, under the assumption that in April the monthly sales in Division 2 increase to $170,000 Organize this income statement in the format illustrated above, including columns for percentages.ROBERTS, INC. Income Statement by Divisions For the Month Ended April 30 Divisions Roberts, Inc. Division 1 Division 2 Dollars Percent Dollars Percent Dollars Percent $ $ $ $ $ $ Division responsibility margin $ $ $ Income from operations $.