Exercise 4-11 (Algo) Segmented Income Statement (L04-4] 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 $1,615,000 Variable expenses 702,350 Contribution margin 912.650 Fixed expenses 1.004.000 Net operating income (Loss) $ (91,350) 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: East $445,000 Division Central West $620,000 $550,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses 558 $289,000 $325,000 $200,000 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 $29,000 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? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West 0 0 0 OLS 0S 0S 0 RE Reg 2A > Exercise 4-11 (Algo) Segmented Income Statement (L04-4] Wingate Company, a wholesale distributor of electronic equipment, has been experiencing osses 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) $1,615,000 702,350 912.650 1,004,000 $ 91,350) 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: East $445,000 Division Central $620,000 West $550,000 Variable expenses as a percentage of sales Traceable fixed expenses 558 33 $289,000 $325,000 46 $200,000 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 $29,000 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-. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $29,000 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.) Show less Net operating income will Exercise 4-11 (Algo) Segmented Income Statement (L04-4) 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 $1,615,000 Variable expenses 702,350 Contribution margin 912,650 Fixed expenses 1.004.000 Net operating income (loss) $ 191,350) 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: East $445,000 Division Central $620,000 West $550,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses 55 $289,000 $325,000 $200.000 Required: 1. Prepare a contribution format Income statement segmented by divisions. 2-1. The Marketing Department has proposed increasing the West Division's monthly advertising by $29,000 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? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Would you recommend the increased advertising? Yes ONO