Wingate Company, a wholesale distributor of electronic equipment, has been experlencing losses as shown by its most recent monthly

contribution format Income statement:

In an effort to resolve the problem, the company wants to prepare an income statement segmented by divislon. Accordingly, the

Accounting Department provided the following information:

Required:

Prepare a contribution format income statement segmented by divisions.

$2-$a$.$ The MarketIng Department belleves Increasing the West Divislon's monthly advertIsing by $$22,000$ will increase that divislon'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.

Required $2$A Required $2B$

Would you recommend the increased advertising?