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 (lon) $ 1,591,000 650,060 940,940 1,035,000 $ (94,060) 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 wales Traceable fixed expenses Tast 5401,000 464 9294,000 Division Central $660,000 320 9324,000 West $530,000 480 $206,000 Required: 1. Prepare a contribution format Income statement segmented by divisions. 2-0. The Marketing Department nos proposed increasing the West Division's monthly advertising by $22,000 based on the belief that It would increase thot division's solos by 18%. Assuming those 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 Reg 2 Reg 28 Prepare a contribution format income statement segmented by divisions. 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 $22,000 based on the belief that it would increase that division's sales by 18%. 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 ZA Reg 28 Prepare a contribution format income statement segmented by divisions. Division Central Total Company East West 0 0 0 0 OS 0 $ 0 $ 0 $ 0 Req2A > Traceable fixed expenses $294,000 $324,000 $206,000 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 $22,000 based on the belief It would increase that division's sales by 18%. Assuming these estimates are accurate, how much would the company's net operat 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 Reg 2A Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $22,000 based on the belief that it would increase that division's sales by 18%. 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
