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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, which follows: In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Prepare a contribution format income statement segmented by divisions, as desired by the president. As a result of a marketing study, the president believes that sales in the West Division could be increased by 14% if monthly advertising in that division were increased by $28.000. Calculate the incremental net operating income. Would you recommend the increased advertising? No Yes

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