Exercise 6-11 (Algo) Segmented Income Statement (L06-4) 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) $1,668,000 213,020 954,950 1,050,000 $ (95,020) 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 percentage of sales Traceable fixed expenses East 5.408,000 44% $ 274,000 Division Central 5 670,000 40% $120,000 West $ 590,000 $ 199,000 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 $25,000 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 (decreases the proposal is implemented? 2b. Would you recommend the increased advertising? 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 $25,000 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? 26. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 28 Prepare a contribution format income statement segmented by divisions Total Company Division Central East West 0 0 0 0 Sales Variable expenses Contribution margin Traceable fixed expenses Divisional segment margin Common fixed expenses not traceable to divisions Not operating loss 0 $ OS 05 0 0 The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 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) Net operating income will increase