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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 statements Sales $ 1,643,000 Variable expenses 576,760 Contribution margin 1,66.240 Fixed expenses 1,173,000 Net operating income (loss) $ (106,760) 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 East Central West Sales $ 403,000 $ 690,000 $ 550,000 Variable expenses as a percentage of sales 424 205 495 Traceable fixed expenses $ 258,000 $ 339,000 $ 202,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-0. The Marketing Department has proposed increasing the West Division's monthly advertising by $27,000 based on the belief that it would increase thot division's sales by 20%. 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 28 Prepare a contribution format income statement segmented by divisions. Division Reg 1 Reg 2A Reg 2B Prepare a contribution format income statement segmented by divisions. Division Central Total Company East West 0 0 0 0 o $ 0 $ 0 $ 0 $ 0 Real Reg 2A > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $27,000 based on the belief that it would increase that division's sales by 20%. 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 Reg1 Req 2B > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Would you recommend the increased advertising? Yes ONO

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