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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) $ 1,682,000 673,880 1,098,120 1,109,000 $ (100,880) 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 $412,000 49% $299,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses Division Central $670,000 40% $325,000 West $600,000 $203,000 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 $23.000 based on the belief that it would increase that division's sales by 11%. 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? Check 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 $23,000 based on the belief that it would increase that division's sales by 11%. 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 2B Prepare a contribution format income statement segmented by divisions. Division Central Total Company East West Req 2A > Prepare a contribution format income statement segmented by 2-a. The Marketing Department has proposed increasing the Wes would increase that division's sales by 11%. Assuming these estim 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 tab Req 1 Reg 2A Reg 2B The Marketing Department has proposed increasing the West Divisio that it would increase that division's sales by 11%. Assuming these net operating income increase (decrease) if the proposal is implemer Net operating income will by

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