Surved Help Save 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) $ 1,559,800 577,920 981,080 1.979,000 $ (97,920) 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 $389,000 58% $ 276,000 Division Central $650,000 27% $332,800 West $520,000 34% $198.000 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 $26,000 based on the belief th it would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net operatin income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? ORE e a Sired Save Help 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 $26,000 based on the belief that it would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Prepare a contribution format income statement segmented by divisions. Total Company Division Central East West Rom> O a tion.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity Saved Help Se quired: Fepare a contribution format income statement segmented by divisions. The Marketing Department has proposed increasing the West Division's monthly advertising by $26,000 based on the belief th Suld increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net operatin me increase (decrease) if the proposal is implemented? Would you recommend the increased advertising? omplete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 28 - Marketing Department has proposed increasing the West Division's monthly advertising by $26,000 based on the belief t it would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's operating income increase (decrease) if the proposal is implemented? (Do not round intermediate calculations.) perating income will by 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 $26,000 it would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the c 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 1 Req 2A Req 2B Would you recommend the increased advertising? Yes No
