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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 (loss) $ 1,656,000 581,680 1,074,320 1,182,000 5 (127,680) 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 East 5436,000 Sales Variable expenses as percentage of sales Traceable fixed expenses Division Central $640,000 3 $331,000 West $500,000 5250,000 $191,000 Required: 1. Prepare a conuibution format income statement segmented by divisions 2.0. The Marketing Department has proposed increasing the West Division's monthly advertising by $21000 based on the belief that it would increase that division's sales by 119. Assuming these estimates are accurate, how much would the companys net operating income increase (decrease the proposals implemented 2.6. Would you recommend the increased advertising Reg 1 Reg 2A Reg 2B Prepare a contribution format income statement segmented by divisions. Sales Variable expenses Contribution margin Traceable fixed expenses Divisional segment margin Common forced expenses not traceable to divisions Net operating loss Division Total Company East Central West $ 1,656,000 $ 436,000 $ 640.000 $ 580,000 (581,680) (209.280) (198,400) (174,000) 1,074,320 226,720 441,600 405,000 280.000 331,000 191.000 1.074320 (53 280) $ 110,600 $ 215.000 $ 1074,320 Reg 2A > Complete this question by entering your answers in the tabs below. Req1 Req 2A Reg 28 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 11%. 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.) Nel operating income wi by 100 Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below Puget Sound divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (a) Revenue (5365.000) $ 35,500 Expenses: Mages and salaries (58,000 $125.000) 20, 500 Supplies ($3.000) 300 Equipment rental (51,800 $32.000) 5.000 Insurance ($3,400) Miscellaneous (5630 - $1.800) Total expense 30, ele Net operating Income $ 6,49 810 During May, the company's actual activity was 105 diving hours Required: Prepare a flexible budget for Moy Required: Prepare a flexible budget for May. Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income 0