Q3

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 Sales $ 408,000 $ 700,000 $ 550,000 Variable expenses as a percentage of sales 594 36 354 Traceable fixed expenses $ 279,900 $ 332,000 $ 197,880 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 $24,000 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? 2-6. Would you recommend the increased advertising? ces Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 25 Prepare a contribution format Income statement segmented by divisions. Division Total Company East Central West 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 Req2A >