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:

$1$

points

Print

Sales

Variable expenses

Contribution margin

Fixed expenses

Net operating income $(10$ss$)$

$[$$$1,610,000],[551,400],[1,058,600],[1,164,000],[$$$(105,400)]$

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:

$\backslash$table$[[,,$Division$],[,$East,Central,West,$],[$Sales$,$$$410,000,$$$670,000,$$$530,000,],[$Variable expenses as a percentage of sales,$52\%,22\%,36\%,],[$Traceable fixed expenses,$$278,000,$$$326,000,$$$208,000,]]$

Required:

Prepare a contribution format income statement segmented by divisions.

$2-$a$.$ 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 $13\%.$ 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$2B$

Prepare a contribution format income statement segmented by divisions.

$\backslash$table$[[,$Total Company,Division$],[,$East,Central,West$],[$Sales$],[$Variable expenses$],[$Contribution margin,$0,0,0,0],[$Traceable fixed expenses$],[$Divisional segment margin,$0,$$$,$$$,$$