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) $ 1,634,000 637,540 996,460 1,096,000 $ (99,540) 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: East Sales $ 404,000 Variable expenses as a percentage of sales 514 $ 295,000 Traceable fixed expenses Required: Division Central $640,000 378 $ 336,000 1. Prepare a contribution format income statement segmented by divisions. West $590,000 331 $ 206,000 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 19%. 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? Complate 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 < Prev 1 of 1 Next >