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 1,658,000 Variable expenses Contribution margin Fixed expenses 627.78e 1,030,30e 1,133,0ee (102,70e) Net operating income (loss) 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 West $620,eee 24% $448, eee 45% $590, eee 47% Sales Variable expenses as a percentage of sales Traceable fixed expenses $194,eee $254,eee $331,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 advertising by $27,000 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-b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Req 2A Req 1 Req Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West 0 0 0 0 S C S 0 0 0 S Req 1 Req 2A C Req 1 Reg 2A Reg 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 20 %. 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.) by Net operating income will Req 1 Req 2B> Req 1 Req 2A Req 2B Would you recommend the increased advertising? OYes ONo Req 2B Req 2A 2 Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows Whitman Company Income Statement Sales (42,e08 units x $40.10 per unit) Cost of goods sold (42,eee units x $22 per unit) Gross margin Selling and administrative expenses $1,684,280 924.0e0 points 760,200 441.080 319,200 Net operating income eBook The company's selling and administrative expensess consist of $315,000 per year in fixer expenses. The $22 unit product cost given above is computed as follows: expenses and $3 per unit sold in variable Hint $ 1e Direct materials Direct labor 4 Print Variable manufacturing overhead Fixed manufacturing overhead ($276,e0e46,eee units) 2 $ 22 Absorption costing unit product cost References Required: 1. Redo the company's income statement in the contribution format using variable costing. 2 Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Redo the company's income statement in the contribution format using variable costing. Whitman Company Variable Costing Income Statement 0 0 C S C Required 1 Required 2 Reconcile difference betw income on the absorption costing income statement above. (Enter any losses or deductions as a negative value operating Reconciliation of Variable sting and Absorption Costing Net Operating Incomes Variable coating net operating inoome Absoration costing net operating income Required 1 Required 2 Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $215. Data for last year's operations follow Units in beginning inventory Units produced Units sold 10,400 9,100 1,300 Units in ending inventory Variable costs per unit: Direct materials 62 Direct labor 35 Variable manufacturing overhead Variable selling and administrative Total variable cost per unit 19 129 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 312,000 500,000 812,000 Total fixed costs Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses absorption costing. Prepare an income statement for last year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill Unit product cost Required 2 Required 1 Comprete tns question Dy emteng your answers mthe tabs Deluw. Required 1 Required 2 Assume that the company uses absorption costing. Prepare an income statement for last year. Chuck Wagon Grills, Inc. Absorption Costing Income Statement Net operating income (loss) Required 2. Required 1 Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $300. Data for last year's operations follow: Units in beginning inventory Units produced Units sold 10,200 8,700 1,500 Units in ending inventory Variable costs per unit: Direct materials 60 Direct labor 40 mnufacturing tative iable selling and verhead 30 Total variable cost per unit 140 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative S 190,000 1,010,000 $1,200,000 Total fixed costs Required: 1.Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill 2. Assume that the company uses variable costing. Prepare a contribution format income statement for last year. 3. What the company's break-even point in terms of the number of barbecue grills sold? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill Unit product cost