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Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses fors recent monthly contribution format income statement: ome time, as shown by its
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses fors recent monthly contribution format income statement: ome time, as shown by its most Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,564,080 572,140 991,860 1,091,000 $ (99,140) Book Ive the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Hint Accounting Department has developed the following information: Division Central $374,000 690,80e ss00,000 Print East West Sales Variable expenses as a percentage of sales Traceable fixed expenses 46% 29% $291,000 $340,00e $204,000 References 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 $25,000 based on the belief that it would 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2AReq B Would you recommend the increased advertising? Yes ONo Req 2A Mc 1 of 4 Nxt >
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