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 most recent monthly contribution format income statement, which follows: Sales Variable expenses $ 1,000,000 390,000 Contribution margin Fixed expenses Net operating income (loss) 610,000 625,000 $ (15,000) In an effort to Isolate the problem, the president has asked for an income statement segmented by division Accordingly, the Accounting Department has developed the following information: Sales Variable expenses as a percentage of sales Traceable fixed expenses East $250,000 52% $160,000 Division Central $400,000 30% $200,000 West $350,000 40% $175,000 Required: 1. Prepare a contribution format income statement segmented by divisions, as desired by the president Division Total Company Total Compan East Central West 0 $ 0 $ 0 $ 0 MacBook Pro 2-a. As a result of a marketing study, the president believes that sales in the West Division could be increased by 20% if monthly advertising in that division were increased by $15,000. Calculate the incremental net operating income. Incremental net operating income 2-b. Would you recommend the increased advertising? O No Yes Hints References eBook & Resources Hint #1