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6.6 Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format

6.6
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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: 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: Required: 1. Prepare a contribution format income statement segmented by divisions. 2-0. The Marketing Department has proposed increasing the West Division's monthly advertising by $15,000 based on the belief that it would increase that division's sales by 20%. 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? Required: Prepare a contribution format income statement segmented by divsions. 2 a. The Marketing Department has proposed increasing the West Division's monthly edvertising by $ would increase that division's sales by 20%. Asseming these estimates are accurate, how mich would income increase \{decrease) if the proposal is implemented? 2-b. Would you recommend the incteased acvertising? Complete this question by entering your answers in the tabs below. Prepare a coptributien format incerne statement segenestes by divisians. Efiot to resolve the problem, the compary would ike to progare an income statement segrnented by avician inting Department has deveioped the following itloremast: toulred: Fiepare a cortebunion format income stabemert segmerted by atyeions: could increase that divisioms sales by 20% Assuming ferse entrmes are accirati, hew muth would the comearirs net 26 Would you secoomend the increased adwerting? Cemplete this quention by entering rour answers in the take berive. In an effort to resolve the problem, the company would like to prepare an incomeAccounting Department has developed the following information: Required: 1. Prepare a contribution format income statement segmented by divisions 2-a. The Marketing Department has proposed increasing the West Division's monthly would increase that division's sales by 207 . Assuming these estimates are accurate. 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. Would you recommend the iecreased atvertichg

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