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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

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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 statement Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,607,000 526,320 1,080, 680 1,189,000 $ (108,320) 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 West Sales $57,000 $660,000 $590,000 Variable expenses as a percentage of sales 203 39% Traceable fixed expenses $288,000 5330,000 $198.000 16 Required: 1. Prepare a contribution format income statement segmented by divisions 2- The Marketing Department has proposed increasing the West Division's monthly advertising by $20,000 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 of the proposal is implemented? 2-6. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg Reg 2 Reg 26 Prepare a contribution format income statement segmented by divisions Saved would increase that division's sales by 1/%. Assuming these estimates are accurate, how much would the company's income increase (decrease) if the proposal is implemented? 2-6. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Prepare a contribution format income statement segmented by divisions. Total Company Division Central East West Red Req 2A > Sales Variable expenses as a percentage of sales Traceable fixed expenses East $357,000 46% $288,000 Central $660,000 20% $330,000 West $590,000 39% $198,000 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 $20,000 based on the would increase that division's sales by 17%. Assuming these estimates are accurate, how much would the company's net op 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 2A Req 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $20,000 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 will by

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