net operating Wes 5. Do you think that Crossfire regions when computing the break-even points for each reg EXERCISE 6-11 Segmented Income Statement LO6-4 Sales Variable expenses Contribution margin ... Fixed expenses ...... Net operating income (loss) ... $1,000,000 390,000 610,000 625,000 (15,000) Division West 40% 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: segmented by division. Accordingly, the Accounting Department has developed the following In an effort to resolve the problem, the company would like to prepare an income statemen The company's selling and administrative expenses consist of $210,000 per year in fixed expenses and $ information: East Central $250,000 $400,000 $350,000 Sales 52% 30% Variable expenses as a percentage of sales $160,000 $200,000 $175,000 Traceable fixed expenses Required: 1. Prepare a contribution format income statement segmented by divisions. 2. The Marketing Department has proposed increasing the West Division's monthly advertising by $15,000 based on the belief that it would increase that division's sales by 20%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? EXERCISE 6-12 Variable Costing Income Statement; Reconciliation LO6-2, LO6-3 Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement $2 per $875,000 560,000 Sales (35,000 units x $25 per unit).. Cost of goods sold (35,000 units $16 per unit) Gross margin Selling and administrative expenses Net operating income 315,000 280,000 $ 35,000 unit sold in variable expenses The $16 Imuted as follows