EXERCISE 6-11 Segmented Income Statement LO6-4 Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses or some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses.... Net operating income (loss). $1,000,000 390,000 610,000 625,000 $ (15,000) 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 . Variable expenses as a percentage of sales Traceable fixed expenses $250,000 $400,000 $350,000 30% $160,000 $200,000 $175,000 52% 40% Required: I. Prepare a contribution format income statement segmented by divisions. 2. The Marketing Department has proposed increasing the West Division's monthly advertising by $15,000 based on the belief that it would increase that division's sales by 20%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? Income Statement; Reconciliation L06- 2, LO6-3 absorption cost