nts Swed 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 $ 1,556,000 Variable expenses 554,900 Contribution margin 1,001,100 Tixed expenses 1,101,000 Net operating income (losa) 5 (99,900) 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 East Central West Holes $ 406,000 8 630,000 $ 520,000 Variable expenses as a percentage of sales 230 126 Traceable fixed expenses $ 298,000 $129.000 $ 195,000 Required: 1. Prepare a contribution format income statement segmented by divisions 2-a The Marketing Deportment has proposed increasing the West Division's monthly advertising by $25,000 based on the belief thot it would increase thot division's sales by 15%. Assuming these 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? CON Complete this question by entering your answers in the tabs below. Reg1 Reg 2A Reg 20 it would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net operatir 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. Reg 1 Reg 2A Reg 28 Prepare a contribution format income statement segmented by divisions. Division Central Total Company East West 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 RA Req2A > 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the belief that it would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net operating Income increase (decrease) if the proposal is implemented? 2-6. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the belief that it would increase that division's sales by 15%. 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.) Net operating income will ces nts 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 $25,000 based on th it would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's ne income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? Skipped eBook Complete this question by entering your answers in the tabs below. Hint Print References Reg 1 Req 2A Reg 28 Would you recommend the increased advertising? Ores ONO
