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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
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) $1,530,000 578,700 951,300 1,045,000 (94,700) 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 Central 5630,000 East $190,000 SU $267.000 Sales Variable expenses percent of sales Tractable Fixed expenses 3510,000 $325,000 5198,00 Required: Prepare a contribution format income statement segmented by divisions 2.0. The Marketing Department has proposed increasing the West Division's monthly advertising by $20,000 based on the belief that it would increase that division's sales by 12% 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. Raat Reg 2 Reg 2 Prepare a contribution format income statement segmented by divisions
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