Exercise 7-11 Segmented Income Statement (LO7-4) Wingate Company, a wholesale distributor of electronic equipment has been experiencing losses for some time, as shown by its mos recent monthly contribution format income statement Sales Variable expenses Contribution margin Fixed expenses Tiet operating income (loss) 51.665,980 699,950 965,050 1 062,000 $ (96,950) 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: Sales Variable txpenses as a percentage of sales Yraceable fixed ones East $385,000 SI $234,000 Division Central 5680,000 375 $325.000 West $600,000 42 $209,000 Required: 1. Prepare a contribution format income statement segmented by divisions 2. The Marketing Department has proposed increasing the West Division's monthly advertising by $26.000 based on the belief that it would increase that division's sales by 19% 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 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 $26,000 based on it would increase that division's sales by 19%. Assuming these estimates are accurate, how much would the company's Income increase (decrease) If the proposal is implemented? 2-6. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 20 Prepare a contribution format Income statement segmented by divisions. Total Company Division Central East West 0 0 0 0 0 5 05 0$ 0 S 0 Reg 2A > Complete this question by entering your answers in the tabs below. Reg 1 Red 2A Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $26,000 based on the belief that it would increase that division's sales by 19%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? (Do not round intermediate calculations.) Not operating income will by Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Would you recommend the increased advertising? OY No