EXERCISE 13-16 Segmented Income Statement [LO1] Wingate Company, a wholesale distributor of videotapes, has been experiencing losses for some time, as shown by its mos t recent monthly contribution format income statement, which follows: $1,000,000 390,000 .. 610,000 . . riable expenses .._... Contribution margin Fixed expenses . . . opoo 535,pdc 625,000 . In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Di Variable expenses as a percentage of sales 30% 40% Performance Measurement in Decentralized Organizations 695 Required: Prepare a contribution-format income statement segmented by divisions, as desired by the president. As a result of a marketing study, the president believes that sales in the West Division could be increased by 20% if monthly advertising in that division were increased by $15,000, would you recommend the increased advertising? Show computations to support your answer 2