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) $1,618,000 703,230 914,720 1.000,00 5 (91,250) In an effort to resolve the problem the company would like to prepare an income statement segmented by clivision Accordingly, the Accounting Department has developed the following information Division East Central west $430,000 5660,000 $520,000 Vorlable expenses as percentage of sales Sex 30% sex Tractable fixed expenses $285,000 $320,00 5206,000 Sales Required: 1. Prepare a contribution format income statement segmented by divisions 20. The Marketing Department has proposed increasing the West Division's monthly advertising by $23,000 based on the belief that it would increase that division's sales by 19% Assuming these estimates are accurate, how much would the company's net operating Income increase (decrease) if the proposal is implemented? 2-6 Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 RZA Red 20 Prepare a contribution format income statement segmented by divisions. Total Company Division Central Went 0 Accounting Department has developed the following information Division East Central Sales $438,000 $660,000 Variable expenses as a percentage of sales 56% 30% Traceable fixed expenses $285,000 $320,000 West $520,000 50% $206,000 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 $23,000 based on the belief that it would increase that division's sales by 19% Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Req Req 2A Reg 28 Prepare a contribution format income statement segmented by divisions. Total Company Division Central East West 0 0 0 0 05 0 $ os 0 0 Rag Req2A Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,618,000 703,280 914,720 1,006,000 5 (91,280) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingl Accounting Department has developed the following information Division East Central West Sales $438,000 $660,000 $520,000 Variable expenses as a percentage of sales 56% 50% Traceable fixed expenses $285,000 $320,000 $206,000 30% 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 $23,000 based on the belle would increase that division's sales by 19%. Assuming these estimates are accurate, how much would the company's net operat income increase (decrease) if the proposal is implemented? 2-6. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 Res 2A Red 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $23,000 based on the belief that it would increase that division's sales by 19%. 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.) Not operating income win
