Check my work 3 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 10 points Salea Variable expenses Contribut ion margin Fixed expenses Net operating incone (Loss) $1. 629, 000 074.970 $ (107,030) 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 Central 389,000 640, 000 600, 000 Veat Sales Variable expenses as a percentage of sales Traceable fixed eapmses 47% 29% 32 207,000 322.000 195.000 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. Req 1 Req 2A Req 28 Prepare a contribution format income statement segmented by divisions Total Company East Central West Complete this question by entering your answers in the tabs below Req 2A Req 1 Req 2B Prepare a contribution format income statement segmented by divisions. Division Total CompanyEast Central West Req 1 Req 2A > 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. Req 2A Req 28 Req 1 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 K Req 1 Req 2B > Req 2A Req 2B Req 1 Would you recommend the increased advertising? OYes No
