bok rences Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as shown by its most recent monthly contribution format Income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss). In an effort to resolve the problem, the company wants to prepare an income statement segmented by division. Accordingly, the Accounting Department provided the following Information: Sales Variable expenses as a percentage of sales Traceable fixed expenses $ 1,537,000 577,738 959,278 1,055,000 $ (95,738) Req 1 Req 2A East $ 427,800 Req 28 59% $ 254,000 Complete this question by entering your answers in the tabs below. Division Central $ 610,000 Required: 1. Prepare a contribution format Income statement segmented by divisions. A 2-a. The Marketing Department believes increasing the West Division's monthly advertising by $27,000 will 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? 2-b. Would you recommend the increased advertising? Prepare a contribution format income statement segmented by divisions. 28% $ 336,000 West $ 500,000 31% $ 197,000

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as shown by its most recent monthly contribution format income statement In an effort to resolve the problem, the company wants to prepare an income statement segmented by division. Accordingly, the Accounting Department provided the following information: Required: 1. Prepare a contribution format income statement segmented by divisions. 2-0. The Marketing Department believes increasing the West Division's monthly advertising by $27,000 will increase that division's soles by 15%. Assuming these estimates are occurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2.6. Would you recommend the increased odvertising? Complete this question by entering your answers in the tabs below. Prepare s contribution format inceme statement segmented by divisions. Requiled: 1. Prepare a contribution format income statement segmented by divisions. 2-0. The Marketing Department believes increasing the West Division's monthly advertising by $27,000 wil 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? 2.b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. The Markebing Department believes increasing the West Division's monthly advertising by 527,000 will increase that division's sales by 15%. Assuming these eatimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? Notei Do not round intermediate calculations. Required: 1. Prepare a contribution format income statement segmented by divisions 2-a. The Marketing Department belleves Increasing the West Division's monthly advertising by $27,000 will 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? 2-b. Would you recommend the increased odvertising? Complete this question by entering your answers in the tabs below. Would you recommend the increased advertising? Required: 1. Prepare a contribution format income statement segmented by alvisions. 2-a. The Markeung Department belleves increasing the West Division's monthly advertising by $27,000 will 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? 2.b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Prepare a contribution format income statement segmented by divisions