Exercise 6-11 Segmented Income Statement (LO6-4) Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its m recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,609,000 692,400 916,600 1,008,000 $ (91, 480) 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: West Sales Variable expenses as a percentage of sales Traceable fixed expenses East $439,000 60% $285,000 Division Central $650,000 38% $340,000 $520,000 35% $210,000 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 13%. 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? Req 1 Reg 2A Reg 2B Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 Req 2A > 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 b would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net ope income increase (decrease) if the proposal is implemented? 2-6. Would you recommend the increased advertising? 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 $24,000 based on the belief that it would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net perating income increase (decrease) if the proposal is Implemented? (Do not round Intermediate calculations.) Net operating income will by