Wingate Company, a wholesale distributor of electronic equipment, has been experlencing 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:

Required:

Prepare a contribution format Income statement segmented by divisions.

$2-$a$.$ The Marketing Department belleves Increasing the West DIVIslon's monthly advertising by $$27,000$ will Increase that division's

sales by $13\%.$ 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?

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Req $2B$

Prepare a contribution format income statement segmented by divisions.