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) $ 1,524,000 584,720 939, 280 1,033,000 $ (93,720) 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: Sales Variable expenses as a percentage of sales Traceable fixed expenses East $374,000 53% $290,000 Division Central $600,000 25% $335,000 West $550,000 43% $196,000 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 $27,000 based on the belief that it would increase that division's sales by 17%. 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. O II earch UCWUIR Saved 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 $27,000 based on the belief that it would increase that division's sales by 17%. 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 Reg 28 Prepare a contribution format income statement segmented by divisions. Total Company Division Central East West 0 0 0 0 os 0 $ 0$ 0 $ 0 & Reg Reg 2A > ] o Sayed 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 $27.000 based on the belief that it would increase that division's sales by 17%. 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 Reg 2A Req 2B 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 17%. 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 Tuulalon.com ext/map/index.html?_con=con&external_browser=0&launchUrlhttps%253A%252F%252Fucmo blackboard.com 252Fwebapps 252Fportar 2528 SECA 4 - Google Docs + 1 - Google Sheets Connect Homework Seved Required information [The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices--one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company's most recent year is given: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 600,000 100.0% 324.ee 54.0% 276,000 46.0% 134,400 22.4% 141,600 23.6% 96,000 16.0% $ 45,600 7.6% Office Chicago Minneapolis $ 120,000 100% $430,000 100% 36,000 30% 288,00e 6ex 84,000 192,000 62,400 52% 72,000 155 $ 21,600 18% 120,000 25% Required: 1-a. Compute the companywide break even point in dollar sales. 1-b. Compute the break-even point for the Chicago office and for the Minneapolis office. 1-c. Is the companywide break-even point greater than, less than or equal to the sum of the Chicago and Minneapolis break even points? Complete this question by entering your answers in the tabs below. me NU traceable to offices Net operating income 96,689 45,600 $ 16,0% 7.6% Required: 1-a. Compute the companywide break-even point in dollar sales. 1-b. Compute the break-even point for the Chicago office and for the Minneapolis office. 1-c. Is the companywide break-even point greater than, less than or equal to the sum of the Chicago and Minneapolis bre points? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answers to the nearest whole dollar amount.) Break even point in dollar sales C Reg 1A Req 1B > Saved Common fixed expenses not traceable to offices Net operating income 96,000 $ 45,600 16.03 7.6% f3 Required: 1-a. Compute the companywide break-even point in dollar sales. 1-b. Compute the break-even point for the Chicago office and for the Minneapolis office. 1-c. Is the companywide break-even point greater than, less than or equal to the sum of the Chicago and Minneapolis break-even points? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 1C Compute the break-even point for the Chicago office and for the Minneapolis office. (Round "CM ratio to 2 decimal places and final answers to the nearest whole dollar amount.) Break-even Point Chicago office Minneapolis office Req 1A Reg 10 > 5 Prey 6 Next > of 6 !!! Common fixed expenses not traceable to offices Net operating income 96,000 $ 45,600 16.ex 7.6% Required: 1-a. Compute the companywide break-even point in dollar sales. 1-b. Compute the break-even point for the Chicago office and for the Minneapolis office. 1-c. Is the companywide break-even point greater than, less than or equal to the sum of the Chicago and Minneapolis break-eve points? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 10 Is the companywide break-even point greater than, less than or equal to the sum of the Chicago and Minneapolis break-even points? Greater than Less than Equal to speech 4 - Google Docs + 1 - Google Sheets x Connect mheducation.com/ext/map/index.html?_con=con&external browser=&launchurl=https%253A%252F%252Fucmo blackboard.com 252Fwebapps. 35.2 porta. Szeren Homework Saved Help Required information [The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company's most recent year is given Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Connon fixed expenses not traceable to offices Net operating income Total Company $ 600,000 100.0% 324,000 54.ex 276,000 46.ex 134.400 22.4% 141,600 23.63 96,000 16.0% $ 45,600 7.65 Office Chicago Minneapolis $ 120,000 100% $ 480,000 100% 36.000 3ex 288,000 tex 84,000 70% 192,000 45 62,400 52% 72,000 15% $ 21,600 18% $ 120,000 255 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $60,000 per year? Assume no change in cost behavior patterns. Net operating income increase extomheducation.com/ext/map/indexhtml?_con=contextemal_browser=0&launchUrl=https%253A%252F%252Fuomo blackboard.com 252Fwebapps 8252Fportal 2528 Speech 4 - Google Docs + 1 - Google Sheets X Connect ter 4 Homework Saved ! 3 of 3 Required information [The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices--one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company's most recent year is given gook rint Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Fences Office Chicago Minneapolis $ 120,000 100% $ 480,000 100x 36,000 3e3 288,000 6ex 84,000 70x 192.ee 40% 62,400 52% 72.000 15% $ 21,600 18% $ 120,000 25% Total Company $ 600,000 100.0% 324 000 54.ox 276,000 46.04 134,400 22.4% 141,600 23.6% 96,000 16.0% $ 45,600 7.6% 3. Assume that sales in Chicago increase by $40,000 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs. a. Prepare a new segmented Income statement for the company. (Round your percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Segments Total Company Chicago Minneapolis Lueernal_browser=0&launch Url=https%253A%252F%252Fucmo blackboard.com 252Fwebapps2 portal 25 Conned 4 Homework Saved Common fixed expenses not traceable to offices Net operating income 96,000 $ 45,600 16.0% 7.6% 3. Assume that sales in Chicago increase by $40,000 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs. a. Prepare a new segmented income statement for the company. (Round your percentage answers to 1 decimal place (.e. 0.1234 should be entered as 12.3).) Segments Total Company Amount % Minneapolis Chicago Amount Amount Prey go of 6 Next >