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Wingate Company, a wholesale distributor of electronic equipment, has been expertencing losses for some time, as shown by its most recent monthly contribution format Income

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Wingate Company, a wholesale distributor of electronic equipment, has been expertencing 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) $1,620,000 624, see 995, 200 1,095, eee 5 (99,8ee) 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 $370,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses Division Central 5690,000 32% $331,000 West $568,000 41% $206,000 $286,000 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 $29.000 based on the belief that it would increase that division's sales by 14% Assuming these estimates are accurate how much would the company's net operating Income increase (decrease of 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 Rag 2 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. Reg 1 Req 2A Reg 28 Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West Req 2A Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $29,000 based on the belief that it would increase that division's sales by 14%. 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 caleulations.) Not operating income will

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