please solve and explain normally
Help 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 Save & Chec $ Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) 1,599.000 599,150 999,850 1,100,000 (100,150) $ 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: Sales Variable expenses as a percentage of sales Traceable fixed expenses East $ 449,000 45% $ 254,200 Division Central 5620,000 29% $334,000 West $530,000 415 $203,000 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 $30,000 based on the belief that it would increase that division's sales by 10%. Assuming these estimates are accurate how much would the company's net operating income increase (decrease) if the proposallis implemented? 2-b. Would you recommend the increased bdvertising? Chech 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 $30,000 based on the belief that it would increase that division's sales by 10%. 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? Help Save & E. 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. Sales Variable expenses Contribution margin Traceable fixed expenses Divisional segment margin Common forced expenses not traceable to division, Net operating loss Total Company $ 1.599,000 (599,150)| 999,850 East $ 449,000 (202,050)| 246,950 Division Central $ 620,000 (179,800) 440 200 West $ 530,000 (217,300) 312.700 S 246,950 $ 440,200 $312.700 999 850 620880 378,970 $ Help Save 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 $30,000 based on the belief that would increase that division's sales by 10%. 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $30,000 based on the belief that it would increase that division's sales by 10%. Assuming these estimates are accurate, how much would the company net operating income increase (decrease) if the proposal is implemented? (Do not round Intermediate calculations Net operating income will
