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Needing help with this accounting problem. Thanks in advance! Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as

Needing help with this accounting problem. Thanks in advance! image text in transcribed
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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) $1,626,000 659,400 966,600 1,063,000 $ (96,400) 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 $386,000 $670,000 $570,000 $280,000 330,000 $202, 000 EastCentral West Sales Variable expenses as a percentage of sales Traceable fixed expenses 558 318 428 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 $26,000 based on the belief that it would ncrease that division's sales by 17%. Assumingthese 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? 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

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