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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) $ 1,706,000 762,400 943,606 1,038,000 $ (94,400) 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 $446,000 $660,000 $600,000 Variable expenses as a percentage of wales 478 Traceable fixed expenses $253,000 $326,000 $193,000 West Sales 500 394 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 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. Saved Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Prepare a contribution format Income statement segmented by divisions. Division Central West East Total Company 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 belie it would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net opera 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 Req 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 13%. 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

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