Chapter 7 - Homework Help Save & E Che 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: Ents Sales Variable expenses Contribution margin Fixed expennen Het operating income (loss) 1,657,000 548.990 1,108,010 1,219,000 $ (110,990) 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: Print West $570,000 Division Central 5660,000 268 $331,000 East $427,000 478 $256.000 Sales Variable expenses as a percentage of sales Traceable fixed expenses 318 $204,000 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 $28,000 based on the belief that it would increase that division's sales by 11%. 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 Req2A Reg 28 Traceable fixed expenses $256,000 $331,000 $204,000 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 $28,000 based on the belief that it would increase that division's sales by 11%. 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 Req 28 Prepare a contribution format income statement segmented by divisions. Division Central Total Company East West Hea Req2A > Help Save & EX Checke Sales Variable expenses as a percentage of sales Traceable fixed expenses East $427,000 478 $256.000 Division Central $660,000 265 $331,000 5570,000 310 $204,000 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 $28.000 based on the belief that it would increase that division's sales by 11%. Assuming these estimates are accurate, how much would the company's net operating Income increase (decrease) if the proposal is implemented? 2-6. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $28,000 based on the belief that it would increase that division's sales by 11%. 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.) Net operating income will by