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) $ 1,598,000 675,600 922,400 1,015,000 $ (92,600) 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: Division Central $ 670,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses East $ 388,000 501 $ 251,000 West $ 540,000 470 $ 192,000 $ 334,000 ses 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 $28,000 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. Reg 1 Reg 2A Reg 28 Prepare a contribution format income statement segmented by divisions. Division + 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 $28,000 based on t would increase that division's sales by 18%. Assuming these estimates are accurate, how much would the company's net 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 Prepare a contribution format income statement segmented by divisions. Division Central East Total Company West Req 2A AVADAV East $ 388,000 508 $ 251,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses Central $ 670,000 348 $ 334,000 West $ 540,000 47% $ 192,000 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 $28,000 would increase that division's sales by 18%. Assuming these estimates are accurate, how much would the com 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 $28,000 based on that it would increase that division's sales by 18%. Assuming these estimates are accurate, how much would the co net operating income increase (decrease) If the proposal is implemented? (Do not round intermediate calculations. Net operating income will by In an effort to resolve the problem, the company would like to prepare an income statement segmented Accounting Department has developed the following information: Sales Variable expenses as a percentage of sales Traceable fixed expenses East $ 388,000 508 $ 251,000 Division Central $ 670,000 348 $ 334,000 West $ 540,000 478 $ 192,000 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 $28,0 would increase that division's sales by 18%. Assuming these estimates are accurate, how much would the 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 Req 2B Would you recommend the increased advertising? Yes ONO
