Exit Submit Check my work 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: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,558,000 679,980 878,020 966,000 $ (87,980) 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 expenses as a percentage of sales Traceable fixed expenses East $398,000 466 $263,000 Division Central $650,000 380 $332,000 West $510,000 498 $ 204,000 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 $26.000 based on the belief that it would increase that division's sales by 15%. 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? Complete this question by entering your answers in the tabs below. FO 2P%252Fw 3 P Helo it would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's nest operating income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? ok Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 28 Prepare a contribution format income statement segmented by divisions. Division Central East West Total Company $ 1,568,000 679,980 878,020 0 0 0 Sales Variable expenses Contribution margin Traceable fixed expenses Divisional segment margin Common fixed expenses not traceable to divisions Net operating loss 878,020 $ 0 $ 0$ $ 878,020 Reg1 Req 2A > 3 of 3 !!! Help Save Exit Submit Check my work 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 the belief that it would increase that division's sales by 15%. 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B 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 15%. 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.) by Net operating income will expenses $263,000 $332.000 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 525.000 based on the it would increase that division's sales by 15%. Assuming these estimates are accurate, how much would be competing 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. Req 1 Reg 2A Reg 2B Would you recommend the increased advertising? Yes No Rage
