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) $1,623,000 691,960 931,040 1,024, eee $ (92,960) 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 $433,000 Division Central $630,000 West $560,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses 62% $275,000 37% $327,000 34% $202, eee 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 $22,000 based on the belief that it would increase that division's sales by 12%. Assuming these estimates are accurate, how much would the compans 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. 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 $22,000 based on the belief that it would 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? 2b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Req1 Req 2A Req 28 Prepare a contribution format income statement segmented by divisions. Division Central Total Company East West - Req1 Req2A > 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 $22,000 based on the belief that It would 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. Reg 1 R2A Reg 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $22,000 based on the belief that it would 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? (Do not round intermediate calculations.) Net operating income will by 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 $22,000 based on the belief that it would 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. Req1 Reg za Req 2B Would you recommend the increased advertising? OYes ONO
