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 0 point Book Print Sales 0 1,556,000 Variable expenses 554,900 Contribution margin 1,001.100 Med expenses 1.101.000 Net operating income (los) (99,500) 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 tales $ 406,000 3.630,000 $ 520,000 Variable expenses as a percentage of sale 608 23 320 Traceable fixed expenses +298,000 $ 139,000 195,000 Required: 1 Prepare a contribution format income statement segmented by divisions 2.0, The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the belief that it would increase that division's sales by 15% Assuming these estimates are accurate, how much would the companys 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 2A Reg 20 Complete this question by entering your answers in the tabs below. ints Reg 1 Reg 2A Req 28 Book Prepare a contribution format income statement segmented by divisions. Hint Division Print Total Company East Central West References Reg1 Req 2A > Complete this question by entering your answers in the tabs below. ht M ances Reg 1 Req 2A Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the belief that it would increase that division's sales by 15%. 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 ( Req1 Req 28 > 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 $25,000 based on the belief that it would increase that division's sales by 15%. 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? DOK n Complete this question by entering your answers in the tabs below. int ences Reg 1 Req 2A Req 28 Would you recommend the increased advertising? Yes ON
