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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
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: Bales Variable expenses Contribution margin Tixed expenses Het operating incon (los) 1,598.000 747.690 850,320 335,000 (84,680) 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: Sale Variable expense percentage of Traceable fixed expenses Division Central 5640.000 $350,000 56 $257.000 Heat 5560,000 408 100.000 5330.000 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 17%. 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? Req1 Reg 2A Reg 28 Prepare a contribution format income statement segmented by divisions. Total Company Division Central East West Req2A > Reg 1 Reg 2A Reg 28 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 17%. 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 wil by Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 28 Would you recommend the increased advertising? 10 Yes NO
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