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Check my work 2 Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent
Check my work 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: 0.5 points Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,000,000 390,000 610,000 625,000 (15,000) eBook 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: Hint Print Sales Variable expenses as a percentage of sales Traceable fixed expenses East $ 250,000 52% $ 160,000 Division Central $ 400,000 30% $ 200,000 West $ 350,000 40% $ 175,000 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 $15,000 based on the belief that it would increase that division's sales by 20%. 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 Req ZA Req 2B Prepare a contribution format income statement segmented by divisions. 2 Required: 1. Prepare contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $15,000 based on the belief that it would increase that division's sales by 20%. 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? 0.5 points Complete this question by entering your answers in the tabs below. eBook 101 Hint Reg 1 Req 2A Req 2B Prepare a contribution format income statement segmented by divisions. Print Division Central Total Company East West References 2 Accounting Department nas developea tne tollowing information: East $ 250,000 52% $ 160,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses Division Centra $ 400,000 30% $ 200,000 West $ 350,000 40% $ 175,000 0.5 points eBook 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 $15,000 based on the belief that it would increase that division's sales by 20%. 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? Hint Complete this question by entering your answers in the tabs below. Print Req 1 Req 2A Req 2B References Would you recommend the increased advertising? Yes ONO Reg 2A Red 2B
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