Saved 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) $1,598,00e 623,540 974,460 1,072,000 $(97,540) nces In an effort to resolve the problem, the company would like to prepare an Income statement segmented by division. Accordingly,the Division East Central West $358,e00 $690,e00 $sse,eeo Sales Variable expenses as a percentage of sales Traceable fixed expenses 47% 28% 48% $255,e00 $329,00 $208,e00 Required: 1 Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department bas proposed increasing the West Division's monthly advertising by $29000 based on the belief thar at would increase that division's sales by 17% Assuming these estimates are accurate, how much would the company's net openog income increase (decrease) If the proposal is implemented C Prev3of6Next Saved 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 $29,000 based on the belief that it would increase that division's sales by 17%. Assuming these estimates are accurate how much would the company's net opera 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 2A Req 2B Req 1 Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West Next Prev 36 rch eclitneducation.com/flow/connect.html Saved 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 $29,000 based on the belilef that it would increase that division's sales by 17%. 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. Req 2A Req 2B Req 1 The Marketing Department has proposed increasing the West Division's monthly advertising by $29,000 based on the belilel that it would increase that division's sales by 17%. 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.) operating income w Req 20> C Req 1
