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: 4.16 points Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,643,000 582,610 1,060,390 1,166,000 $ (105,610) eBook 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: Division East Central West Sales $433,000 $650,000 $560,000 Variable expenses as a percentage of sales 47% 23% 41% Traceable fixed expenses $276,000 $325,000 $201,000 Print References 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 $30,000 based on the belief that it would increase that division's sales by 17%. 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. Req 1 Req 2A Reg 2B Prepare a contribution format income statement segmented by divisions. Division Central Total Company East West Reg Req 2A > 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: 4.16 points Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,643,000 582,610 1,060,390 1,166,000 $ (105,610) eBook 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: Hint Print Sales Variable expenses as a percentage of sales Traceable fixed expenses East $433,000 47% $276,000 Division Central $650,000 23% $325,000 West $560,000 41% $201,000 References 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 $30,000 based on the belief that it would increase that division's sales by 17%. 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. Reg 1 Reg 2A Reg 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $30,000 based on the belief that it would increase that division's sales by 17%. 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.) Show less Net operating income will by 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: 4.16 points Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,643,000 582,610 1,060,390 1,166,000 $ (105,610) eBook 000 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: Division East Central West Sales $433,000 $650,000 $560,000 Variable expenses as a percentage of sales 47% 23% 41% Traceable fixed expenses $276,800 $325,000 $201,880 Print References 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 $30,000 based on the belief that it would increase that division's sales by 17%. 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. Reg 1 Req 2A Req 2B Would you recommend the increased advertising? Yes No