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 $ 1,691,000 Variable expenses 607,640 Contribution margin 1,083,360 Pixed expenses 1,192,000 Net operating income (los) $ 108,640) 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: Division East Central West Sales $ 421,000 $ 670,000 $ 600,000 Variable expenses as a percentage of sales 545 298 Traceable fixed expenses 311 $ 266,000 5 324,000 $ 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 $28,000 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. Reg 1 Reg 2A Reg 25 Prepare a contribution format income statement segmented by divisions Total Company Division Central East West Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 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 15%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? (Do not found intermediate calculations.) Net operating income will by Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Would you recommend the Increased advertising? Yes No