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Vingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most ecent monthly contribution format income
Vingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most ecent monthly contribution format income statement: n 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: Required: Prepare a contribution format income statement segmented by divisions. -a. The Marketing Department has proposed increasing the West Division's monthly advertising by $26,000 based on the belief that : would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net operating nome increase (decrease) if the proposal is implemented? -b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below
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