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) 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: Sales Variable expenses as a percentage of sales Traceable fixed expenses $ 1,655,000 708,550 946,450 1,041,000 $ (94,550) Req 1 Req 2A East $ 445,000 61% $ 285,000 Complete this question by entering your answers in the tabs below. Req 2B 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 $23,000 based on the belief that it would increase that division's sales by 13%. 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? Division Central $ 640,000 30% $ 336,000

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: 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: Required: Required: 1. Prepgre o contribution format income statement segmented by divisions. 2.3. Thb Marketing Department has proposed increasing the West Disision's monthly advertising by $23,000 bosed on the belief that it would increase that division's sales by 13%. Assuming these estimates are occurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $23,000 based on the belief that it would increase that division's sales by 13%. 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. Prepare a contribution format income statement segmented by divisions