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How to calculate the common fixed expense not traceable to division? Ases Saved Help Save & Exit Subm my work mode : This shows what

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Ases Saved Help Save & Exit Subm my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,585,000 621,150 963,850 1,060,000 $ (96,150) 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 $405.000 518 $280,000 Division Central $650.000 251 $323,000 West $520,000 488 $ 200,000 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 $21,000 based on the belief that it would increase that division's sales by 12%. 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?

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