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). $ 1,504,000 615,480 888,520 977,000 $ (88,480) 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 Sales Variable expenses as a percentage of sales Traceable fixed expenses Required: East $ 364,000 Central $630,000 West $510,000 57% $ 252,000 349 $ 321,000 38% $196,000 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Prepare a contribution format income statement segmented by divisions. Division xercises Saved Sales Variable expenses as a percentage of sales Traceable fixed expenses Required: East $ 364,000 Division Central $ 630,000 578 348 $ 252,000 $ 321,000 1. Prepare a contribution format income statement segmented by divisions. West $510,000 388 $ 196,000 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on it would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's 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 1 Req 2A Req 28 Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West Req 1 Req 2A > Sales Variable expenses as a percentage of sales Traceable fixed expenses Required: East $ 364,000 57% $ 252,000 1. Prepare a contribution format income statement segmented by divisions. Division Central $ 630,000 346 $ 321,000 West $ 510,000 38 $ 196,000 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the be it would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net ope 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 1 Req 2A Req 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 by < Req 1 Req 2B > < Prev 9 of 15 Next >