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 $ 1,689,660 Variable expenses 711,??0 Contribution margin 89?,230 Fixed expenses 98?,36'3 Net operating income (loss) 5 (89,?76) 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 Hest Sales $ mJBBB $ 629,988 5 589,606 Variable expenses as a percentage of sales 53% 34% 49% Traceable 'Fixed expenses $ ZEEJBBB 5 322,668 5 264,606 Required: 1. Prepare a contribution format income statement segmented by divisions. 2a. The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 based on the beliefthat 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 labs below. Reg 1 Reg ZA Reg 23 Prepare a contribution format inoome statement segmented by divisions. Net operating income (loss) :6: LBBJIR'UJ 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 Inlest Sale:- $ 499,999 $ 629,999 5 589,999 Variable expenses as a percentage of sales 53% 34% 49% Traceable 'Fixed expenses 1. 255,999 $ 322,999 5 294,999 Required: 1_ Prepare a contribution format income statement segmented by divisions. 2a. The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 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? 2b. Would you recommend the increased advertising? Complete this question by entering your answers in the labs below. Req 1 Reg ZA Reg 23 Prepare a contribution format inoome statement segmented by divisions. Net operating income (loss) s L55,r;e] 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 Hest Sales at 433,333 $ 623,333 $ 583,333 Variable expenses as a percentage of sales 53% 34% 49% Traceable fixed expenses $ 265,983 $ 322,009 5 264,660 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 $24,000 based on the belief that it would increase that division's sales try/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 labs below. Red 1 Reg 2A Reg 23 Prepare a contribution format income statement segmented by divisions. Administrative expenses Advertising Beginning merchandise inventory Commissions Common xed expenses not traceable to divisions Rqu > Net operating income (loss) :6: Loang; 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 Hest Sales $ magmas $ amass $ 588,380 Variable expenses as a percentage of sales 53% 34% 49% Traceable fixed expenses $ 255,886 $ 322,069 $ 264,360 Required: 1. Prepare a contribution format income statement segmented by divisions. 2a. The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 based on the belief that it would increase that division's sales by13%_ Assuming these estimates are accurate, 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 labs below. Reg 1 Reg 2A Reg 23 Prepare a contribution format inoome statement segmented by divisions. Cost of goods sold Depredam" IE Direct labor Direct materials I Ending merchandise inventory Rqu > Net operating income (loss) s (53,;15} 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 Hes-t Sales :5 409,999 5 628,068 3: 589,990 Variable expenses as a percentage of sales 53% 34% 49% Traceable fixed expenses 35 266,886 $ 322,068 $ 264,660 Required: 1. Prepare a contribution format income statement segmented by divisions. 2a. The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 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? 2b. Would you recommend the increased advertising? Complete this question by entering your answers in the labs below. Red 1 Reg ZA Reg 29 Prepare a contribution format inoome statement segmented by divisions. Fixed manufacturing overhead Indirect labor Indirect materials Purchases Sales Tunwn-uhln Flvru-I nunnnnnn Req Hi > Met operating income (loss) :3 {segue} 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 Hest Sales :3 433,333 $ 623,333 $ 583,333 Variable expenses as a percentage of sales 53% 34% 49% Traceable fixed expenses 3} 266,888 $ 322,888 $ 284,808 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 $24,000 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 labs below. Red 1 Reg 2A Reg 23 Prepare a contribution format income statement segmented by divisions. Purchases Sales Traceable fixed expenses Variable expenses I Variable manufacturing overhead I Net operating income (loss) s tus,;;o} 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 Sales $ 499,999 $ 529,999 5 599,999 Variable expenses as a percentage of sales 53% 34% 49% Traceable fixed expenses $ 255,999 $ 322,999 $ 294,999 Required: 1. Prepare a contribution format income statement segmented by divisions. 2a. The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 based on the beliefthat it would increase that division's sales by13%. Assuming these estimates are accurate, 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. Reg 1 Reg ZA RBI] 2B The Marketing Department has proposed increasing the I.ItI'est Division's monthly advertising by $24,000 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? (Do not round intermediate calculations.) increase Net uperali'rg 'Iicome will decrease variaoie EXPENSES (1.1.,er Contribution margin 89?,239 Fixed expenses 982,999 Net operating income (loss) $ (89,229) 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 Sales $ 499,999 $ 529,999 5 599,999 Variable expenses as a percentage of sales 53% 34% 49% Traceable fixed expenses $ 255,999 $ 322,999 $ 294,999 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 $24,000 based on the beliefthat it would increase that division's sales by13'i. 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 Ron 2A Rea ZB ( RquA