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i cant see the full explanations on other posts. please help. Wingate Company, a wholesale distributor of electronic equipment, has been experiencing lotes for some
i cant see the full explanations on other posts. please help.
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing lotes for some time, as shown by its most recent monthly contribution format income statement Sales $1,000,000 Variable speses 390,000 Contribution margin 610,000 Fixed expenses 625,000 Net operating income (less) S (15,000) In an effort to resolve the problem, the company would like to prepare an income staternent segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West $250,000 $400,000 $350,000 Sales Variable expenses as a percentage of tales Tractable feed expenses 52% 30% 40% $160,000 $200,000 $175,000 Required: 1. Prepare a contribution format income statement segmented by divisions 2. The Macloting Department has proposed increasing the West Division's monthly advertising by S15,000 based on the belief that it would increase that division's tales by 20%. Assuming these estimates are accurate, how mich would the company's net operating income increase (decrease if the proposal is implemented Step by Step Solution
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