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Exercise 7-11 Segmented Income Statement [L07-4] 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 $1,630,000 Variable expenses 625,400 Contribution margin 1,004,600 Fixed expenses 1.105,000 Net operating income (loss)S (100.400) | I SI 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 Sales $370.000 $690.000 $570,000 Variable expenses as a percentage of sales 50% 47% Traceable foxed expenses $254.000 $330,000 $197.000 25% 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 $22,000 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) it the proposal is implemented? 2-6. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg

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