Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as shown by its most recent monthly

contribution format Income statement:

In an effort to resolve the problem, the company wants to prepare an Income statement segmented by division. Accordingly, the

Accounting Department provided the following Information:

Requlred:

Prepare a contribution format Income statement segmented by divisions.

$2-$a$.$ The Marketing Department believes Increasing the West DIvIsIon's monthly advertising by $$21,000$ will Increase that division's

sales by $12\%.$ 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.

Prepare a contribution format income statement segmented by divisions.