Exercise 6-11 (Algo) Segmented Income Statement [LO6-4] 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 i Net operating income (loss) $ 1,524,000 610,880 913,120 1,004,000 $ (90,880) 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 East $ 384,000 Variable expenses as a percentage of sales Traceable fixed expenses 57% Division Central $ 620,000 28% West $520,000 42% $ 293,000 $ 339,000 $ 190,000 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 $24,000 based on the belief that it would increase that division's sales by 15%. 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. Division Total Company East. Central West 0 0 0 0 0 $ 0 $ 0 $ $ 0 Beg 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 $24,000 based on the belief that it would increase that division's sales by 15%. 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 The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 based on the beli that it would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company net operating income increase (decrease) if the proposal is implemented? (Do not round intermediate calculations.) Net operating income will 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 $24,000 based on the belief that it would increase that division's sales by 15%. 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 2B Would you recommend the increased advertising? Yes ONO