Exercise 6-11 (Algo) Segmented Income Statement (LO6-4] Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some tim recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,628,000 663, 900 964,100 1,061,000 $ (96,900) In an effort to resolve the problem, the company would like to prepare an income statement segmented by divi Accounting Department has developed the following information: Sales Variable expenses as a percentage of sales Traceable fixed expenses East $398,000 60% $268,000 Division Central $690,000 35% $321,000 West $540,000 34% $ 201,000 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 ba it would increase that division's sales by 11%. Assuming these estimates are accurate, how much would the com 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 Req 2B Prepare a contribution format income statement segmented by divisions. Division Central East West Total Company s 1,628,000 663,900 964,100 1,061,000 (96,900) S 0 0 Sales Variable expenses Contribution margin Traceable fixed expenses Divisional segment margin Common fixed expenses not traceable to divisions Net operating income 0 0 S 0 S 0 S (96 900) Req 2A >