Check my w Exercise 7-11 Segmented Income Statement (L07-4) 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 Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,576,000 541,580 1,834,420 1,138,000 $ (103,580) 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: Sales Variable expenses as a percentage of sales Traceable fixed expenses Division East Central West $386,000 $600,000 $590,000 484 234 374 $271,000 $320,000 $196,880 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 $24.000 based on the belief that it would increase that division's sales by 19%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) If the proposal is implemented? 2b. Would you recommend the increased advertising Complete this question by entering your answers in the tabs below. Saved signment 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 $24,000 based on the belief would increase that division's sales by 19%. 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 Req 28 Prepare a contribution format Income statement segmented by divisions. Division Central Total Company East West 0 0 0 0 Sales Variable expenses Contribution margin Traceable fixed expenses Divisional segment margin Common fixed expenses not traceable to divisions Net operating loss 0 $ 0 $ 0 $ 0 $ 0 Reg 2A > variable expenses as a percentage of sales Traceable fixed expenses 489 $271,000 234 $320,000 37% $196,000 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 $24,000 based on the belief that it would increase that division's sales by 19%. 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 based on the belief that it would increase that division's sales by 19%. 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.) Nel operating income increase by will
