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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 (10) $ 1,542,000 634,760 907,240 995,000 (90.760) 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: Bales Variable expenses as a percentage of sales Traceable fixed expenses Tant $362,000 538 256,000 Division Central $650.000 290 $327,000 West $530,000 480 $205,000 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 $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? Req 1 Reg 2A Req 2B Prepare a contribution format income statement segmented by divisions. Division East Central West Total Company 0 0 0 0 Contribution margin 0 $ 0 $ 0 $ 0 Divisional segment margin 0 Net operating loss Complete this question by entering your answers in the tabs below. Reg 1 Req ZA 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 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.) Not operating income will by ces Reg 1 Req 2A Req 2B Would you recommend the increased advertising? Yes No