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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) 1,628, eee 634.480 993.520 1.093.ee (99,480) 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 $388,000 Sales Variable expenses as percentage of sales Traceable fixed expenses Division Central $699, 35% $330,000 66 West S550,000 39% $225,000 $288,eee Required: 1. Prepare a contribution format income statement segmented by divisions 2.a. The Marketing Department has proposed increasing the West Division's monthly bufvertising by $22.000 based on the belief that it would increase that division's sales by 20%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease if the proposal is implemented? 2-5 Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Req1 Req 2A Reg 28 Prepare a contribution format income statement segmented by divisions. Division Central Total Company East West Complete this question by entering your answers in the tabs below. Req 1 Req2A Reg 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 20%. 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 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Would you recommend the increased advertising? ON

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