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3 Exercise 6-11 (Algo) Segmented Income Statement [LO6-4] 2 Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as

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3 Exercise 6-11 (Algo) Segmented Income Statement [LO6-4] 2 Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most points recent monthly contribution format income statement: Sales $ 1, 630, 000 eBook Variable expenses 701, 000 Contribution margin 929, 000 Hint Fixed expenses 1, 022, 000 Net operating income (loss) $ (93, 000) Print References 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: Division East Central West Sales $ 370, 000 $ 690, 000 $ 570, 000 Variable expenses as a percentage of sales 44% 40% 46% Traceable fixed expenses $ 273, 000 $ 331, 000 $ 198, 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 $21,000 based on the belief that it would increase that division's sales by 18%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below

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