Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mos recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,549,000 597,230 951,770 1.047,000 5 (95.230) 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 East 5379,000 57% $255,000 Division Central $620,000 26% $299,000 West $550,000 40% $199,000 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 $30.000 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? 2.6. Would you recommend the increased advertising? Help Save & Yuu. 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 $30,000 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? 2-6. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Prepare a contribution format income statement segmentel by divisions. Total Company Division Central East West Administrative expenses Advertising Beginning merchandise inventory Commissions activ Saved Save iz 6 Help requieu. 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 $30,000 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 Redza Reg 2B The Marketing Department has proposed increasing the Wost Division's monthly advertising by $30,000 based on the belief that it would increase that division's sales by 15%. Assuming these estimates are accurato, how much would the company's net operating income increase (decrease) if the proposal is implemented? (o not round intermediate calculation) Not operating incomo will by z Saved . Requirea: 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 $30,000 based on the would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net op 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 Reg 2A Reg ke Would you recommend the increased advertising? OYes ONO
