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I need help with this Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most
I need help with this
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, which follows Sales Variable expenses $1,661,000 713,620 Contribution margin Fixed expenses 947,380 1,042,000 Net operating income (loss) $ (94,620) In an effort to isolate the problem, the president has asked for an income statement segmented by division Accordingly, the Accounting Department has developed the following information Division Central $431,000 $660,000 $570,000 East West Sales Variable expenses as a percentage of sales Traceable fixed expenses 62% 40% 32% $295,000 $328,000 $194,000 Required 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. Division Total Company East Central WestStep by Step Solution
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