ACC 208 #1

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, which follows Sales Variable expenses $1,626,000 536,200 Contribution margin Fixed expenses ,089,800 1,199,000 Net operating income (loss) (109,200) In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the Accounting Department has developed the following information Division Central $416,000 $640,000 $570,000 West Sales 50% 21% 34% Variable expenses as a percentage of sales Traceable fixed expenses 264,000 $335,000 $197,000 Required 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. Total East West