2 Exercise 6-11 (Algo) Segmented Income Statement [LO6-4) Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: SS eBook Sales Variable expenses Contribution margin Fixed expenses Net operating Income (10) $3,529,000 726, 480 303, 520 839,000 $100, 420) Hint In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Prim Sales Variable expenses a percentage of sales Traceable fixed expenses References Division Central 5640.000 388 5325,000 Ent 1359.000 621 5250,000 Weat $530,000 498 $154.000 Required: 1. Prepare a contribution format income statement segmented by divisions 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $23.000 based on the bellef that it would increase that division's sales by 15% Assuring these estimates are accurate, how much would the company's net operating Income increase (decrease) of the proposal is implemented? 2.b. Would you recommend the increased advertising Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 21 Prepare a contribution format income statement segmented by division. 2 Division Sales Variable expenses as a percentage of sales Traceable fixed expenses $ 359,000 5640,000 62 386 $250,000 $325.000 West $530,000 593 3194,000 10 points eBook Required: 1. Prepare a contribution format income statement segmented by divisions 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $23,000 based on the belief tha would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) of the proposal is implemented? 2-b. Would you recommend the increased advertising? Hint Complete this question by entering your answers in the tabs below. Print Reg 1 Reg 2A Reg 28 References Prepare a contribution format income statement segmented by divisions. Total Company Division Central East Req 2A > In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly- Accounting Department has developed the following information East $359.000 Sales Variable expenses as a percentage of sales Traceable fixed expenses Division Central 6640.000 381 $325,000 623 West 5530,000 49% $194,000 OK $286, 000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $23,000 based on the belle would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net operativ income increase (decrease) if the proposal is implemented? 2b. Would you recommend the increased advertising? ces Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $23,000 based on the belief that it would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? (Do not round intermediate calculations.) Net operating income will Fixed expenses Net operatang ancome cloa) 803, 520 34,000 (80, 480) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordi Accounting Department has developed the following information: Book Sales Variable expenses as a percentage of sales Traceable fixed expenses East $ 359,000 626 $286,000 Division Central 5640.000 388 $325,000 $530,000 494 $194,000 Hint int Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $23,000 based on the would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net op income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? ences Complete this question by entering your answers in the tabs below. Reg 1 Red 2A Reg 28 Would you recommend the increased advertising? Yes No