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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

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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 $ 1,640,000 631,900 1,006,100 1,109,000 Contribution margin Fixed expenses Net operating income (loss) $ (100,900) 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 Central East West $ 570,000 Sales $ 400,000 Variable expenses as a percentage of sales Traceable fixed expenses $ 670,000 26% $ 288,000 $ 323,000 $ 201,000 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 $23,000 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 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 Rea 2A Reg 28 Prepare a contribution form at income statement segmented by divisions. Total Company East 56% 0 0 $ 0 Division Central 0 0 $ 0 0 $ 41% West 0 0

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