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 Niet operating incone (loss) $1,634.000 629,760 1,284,300 1.105.000 $ (100,700 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 $434,000 Sales Variable expenses as a percentage of sales Teaceable fixed expenses Division Cente S660,000 38% $321,000 West $540,000 34% $191,000 $290,000 Required: 1 Prepare a contribution format income statement segmented by divisions 2a. 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 15%. Assuming these estimates are accurate, how much would the company's net operating Income increase (decrease) if the proposal is implemented? 2-1 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 $25.000 based on the belief that it would increase that division's sales by 15%. 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 2A Req 20 Prepare a contribution format income statement segmented by divisions. Division Central Total Company East West 0 0 0 0 0 $ 0$ 0 $ 0 $ 0 CRO Reg 2A > 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 bellef that it would increase that division's sales by 15%. 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 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 15%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? (Do not found intermediate calculations.) Net operating income will by 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. 5 Req 1 Req 2A Req 2B Would you recommend the increased advertising? Yes Ono
