Exercise 6-11 (Static) Segmented Income Statement (LO6-4] Wingate Company, a wholesale distributor of ofectronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,200,000 390,000 610,000 625,000 (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 Central 5.400.000 301 5.200,000 East $250,000 525 $160,000 Variable expenses as a percentage of sales Traceable fixed oxpenses Nest $ 350,000 40% $175,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2.0. The Marketing Department has proposed increasing the West Division's monthly advertising by $15,000 based on the bellef 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? 2-1 Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. 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 $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? 2-6. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Req Reg 2 Reg 28 Prepare a contribution format income statement segmented tiy divisions. Total Company El Don Central Req2A > 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 $15,000 based on the be would increase that division's sales by 20%. Assuming these estimates are accurate, how much would the company's net ope 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 za Req 28 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? Nat operating income win 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 $15,000 based on the belief would increase that division's sales by 20%. Assuming these estimates are accurate, how much would the company's net operatin 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. rences Reg 1 Reg 2 Reg 28 Would you recommend the increased advertising? (Oros ONO
