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 Pixed expenses Net operating income (loss) $ 1,692,000 589,840 1,102,160 1,212,000 $ (109,840) Book 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: Hint Print Sales Variable expenses as a percentage of sales Traceable fixed expenses Rant $432,000 520 $277,000 Division Central $680,000 235 $331,000 West $580,000 368 $201.000 eferences Required: 1. Prepare a contribution format income statement segmented by divisions. 2-3. The Marketing Department has proposed increasing the West Division's monthly advertising by $22,000 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? Complete this question by entering your answers in the tabs below. Req: Reg 2A Reg 20 au vu VU VAVAV 1 3 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 $22,000 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? points eBook Complete this question by entering your answers in the tabs below. Hint Reg 1 Reg 2A Reg 28 Prepare a contribution format income statement segmented by divisions. Print Division Central Total Company East West References Req2A > 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 $22,000 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $22,000 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 by Complete this question by entering your answers in the tabs below. at Reg 1 Req 2A Req 2B 3 ences Would you recommend the increased advertising? Yes 10 No
