Check my w 2 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 s Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,613,000 596,190 1,016,810 1,118,000 $ (101,190) 02:29:02 Book 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: HE rences West $590,000 $403,000 Division Central $620,000 338 $324,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses 370 $254,000 $203,000 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 $20,000 based on the belief that it would increase that division's sales by 16%. 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. 782 2 A 7.6 Exercises Seved He 1 Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: 5 pints 02:28.08 Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Pixed manufacturing overhead Fixed selling and administrative $ $ $ $ 14 8 2 2 eBook $250,000 $160,000 Hint Print References During the year, the company produced 25,000 units and sold 21,000 units. The selling price of the company's product is $47 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Req 2B Mc (Prey 1 of 2 Next > A