Wingate company a wholesale distributor of electronic equipment has been experiencing losses for some time as shown by it's most recent monthly contribution format income statement:

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: 5 Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,676,000 530, 680 1 145, 320 1 260,000 $ (114) 680) eBook Hint 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: Print Terences Sales Variable expenses as a percentage of sales Traceable fixed expenses East $ 446,000 48% $ 271,000 Division Central $ 700,000 21% $ 333,000 West $ 530,000 32% $ 191,000 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 $21,000 based on the belief that it would increase that division's sales by 11%. 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 Reg 2A Reg 2B Check my work Iraceable fixed expenses 1 1 $ 211,000 $ 333, UVU $ 191, ou 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 $21,000 based on the belief that it would increase that division's sales by 11%. 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? 10 points eBook Complete this question by entering your answers in the tabs below. Hint Print Reg 1 References Reg 2A Req 2B Preppe a contribution format income statement segmented by divisions. Division Total Company East Central West Req 2A > Check my worl 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 $21,000 based on the belief that it would increase that division's sales by 11%. 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? ok Complete this question by entering your answers in the tabs below. nt mt Reg 1 Req 2A Reg 2B ences The Marketing Department has proposed increasing the West Division's monthly advertising by $21,000 based on the belief that it would increase that division's sales by 11%. 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 by Check my work 1 Sales Variable expenses as a percentage of sales Traceable fixed expenses East $ 446,000 48% $ 271,000 Central $ 700,000 21% $ 333,000 West $ 530,000 32% $ 191,000 10 points 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 $21,000 based on the belief that it would increase that division's sales by 11%. 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? eBook Hint Print Complete this question by entering your answers in the tabs below. References Req 1 Reg 2A Req 2B Would you recommend the increased advertising? OYes No