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) $ 1,657,000 623,520 1,033,480 1, 137,000 S (103,520) 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 $447,000 Sales Variable expenses as a percentage of sales Teaceable fixed expenses Division Central $640,000 271 $340,000 Nest $570,000 438 6205,000 3294,000 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 $23,000 based on the belief that it would increase that division's sales by 16%. 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? Management is anxious to assess the profitability of the new camp cot during the month of Ma Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Calculate the unit product cost. b. Prepare a contribution format income statement for May. Complete this question by entering your answers in the table below. Req 1A Req 1B Req 2A Req 2B Determine the unit product cost. Assume that the company uses absorption costing. Unit product cost K Reg 1A Req 1B > 1. ASSUME LIAL LITE LUinally uses GusurpLUH LUSury. a. Calculate the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Calculate the unit product cost. b. Prepare a contribution format income statement for May. Complete this question by entering your answers in the table below. Req 1A Req 18 Req 2A Reg 2B Prepare an income statement for May. Assume that the company uses absorption costing. High Country, Inc. Absorption Costing Income Statement $ 0 Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Calculate the unit product cost. b. Prepare a contribution format income statement for May. Complete this question by entering your answers in the table below. Req 1A Req 1B Reg 2A Reg 2B Determine the unit product cost. Assume that the company uses variable costing. Unit product cost ( Req 1B Req 2B > Req 1A Req 1B Reg 2A LLLLLS Req 2B Prepare a contribution format income statement for May. Assume that the company uses variable costing High Country, Inc. Variable Costing Income Statement 0 0 0 0