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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 (lossy $ 1,551.000 533,940 1,017, 060 119,000 5 (101,9401 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 DIVISI tant Central Weet Sales $361,000 5620,000 $570,000 Variable expenses as a percentage of sale Traceable fixed expenses $273,000 5321.000 $195,000 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 $24,000 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 (decreases if the proposal is implemented? 2-6. Would you recommend the increased advertising Reg 1 Book Reg 2A Reg 28 Hint Prepare a contribution format income statement segmented by divisions. Print Division Central Total Company East West 0 O 0 0 0 $ 0 $ 0 $ 0 $ 0 Req2A > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 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? (Do not round intermediate calculations.) Net operating income will Complete this question by entering your answers in the tabs below. Req1 Reg 2A Reg 28 Would you recommend the increased advertising? Yes NO

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