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Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses Tor some time, as shown by most recent monthly contribution format income statement,
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses Tor some time, as shown by most recent monthly contribution format income statement, which follows: 1 652 000 Mediable expenses Contribution margin 876.540 S (87 460) Net operating income (loss) division. Accordingly. the Accounting Department has developed the following information: n effort to isolate the problem, the president has asked for an income statement segmented I In Division S 620,000 S 442,000 Sales S 590,000 Variable expenses as a percentage of sales Traceable foxed expenses 58 % 39 % 47% S 333.000 $ 193,000 262,000 Required: 1. Prepare a contribution format income statement segmented by divisions, as desired by the president Division Total Company East Central West 19% if monthly advertising in that division were increased by $23,000. Calculate the incremental net operating income. 2-a. As a result of a marketing study, the president believes that sales in the West Division could be increased t Incremental net operating income
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