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) $ 1,583,000 651,410 931,590 1,025,000 $ (93,410) 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 East Central West Sales $363,000 $680,000 $540,000 Variable expenses as a percentage of sales 47% 31% 50% Traceable fixed expenses $260,000 $330,000 $199,000 Required: Prepare a contribution format income statement segmented by divisions. 2- The Marketing Department has proposed increasing the West Division's monthly advertising by $29,000 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? 2b. Would you recommend the increased advertising? 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $29,000 based on the belief that 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. Req1 Req 2A Reg 28 Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West 0 0 0 0 0 $ 0 $ ols 0 $ Req 2A > Accounting Department has developed the following information: Sales Variable expenses as a percentage of sales Traceable fixed expenses East $363,000 47% $260,000 Division Central $680,000 31% $ 330,000 West 5510,000 50x $199,000 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 $29,000 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? 2-6. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $29,000 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? (Do not round intermediate calculations.) Net operating income will Accounting Department has developed the following information: Sales Variable expenses as a percentage of sales Traceable fixed expenses East $363,000 47% $ 260,000 Division Central $680,000 31% $330,000 West $540,000 50% $199,000 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 $29,000 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? 2-6. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Req1 Reg 24 Reg 28 Would you recommend the increased advertising? Yes ONO
