Hello may i have a detailed explanation for these questions please?
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 $ 1,576,000 Variable expenses 533,540 Cont ribution margin 1,042,460 Fixed expenses 1,147,000 Net operating income (loss) $ (104.540) 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 East Central West Sales $446,000 $630,000 $500,000 Variable expenses as a percentage of sales 4495 219s 419s Traceable fixed expenses $281,000 $332,000 $202,000 [ Required: 1. Prepare a contribution format income statement segmented by divisions. 2a. The Marketing Department has proposed increasing the West Division's monthly advertising by $29,000 based on the belief that it would increase that division's sales by 18%. Assuming these estimates are accurate. how much would the company's net operating income increase (decrease) ifthe proposal is implemented? 2b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West Sales Variable expenses Contribution margin 0 0 0 0 Traceable fixed expenses Divisional segment margin 0 $ 0 $ 0 $ 0 Common fixed expenses not traceable to divisions 0 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B :The Marketing Department has proposed increasing the West Division's monthly advertising by $29,000 based on the belief that it would increase that division's sales by 18%. 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. ) Net operating income will by