Complete this question by entering your answers in the tabs below.Req 1Req 2AReq 28Prepare a contribution format income statement segmented by divisions.SalesVariable expensesContribution marginTraceable fixed expensesDivisional segment marginCommon fixed expenses not traceable to divisionsNet operating loss♥Reg!DivisionEastCentral$ 440,000$ 620,000228,800 223,200TotalCompany$ 1,600,000700,400899,600211,200 396,800280,000 320,000795,000104,600 $(68,800) $ 76,800195,000(90,400)$Req 2A >West$540,000248,400291,600195,000$ 96,600 Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mostrecent monthly contribution format income statement:SalesVariable expensesContribution marginFixed expensesNet operating income (loss)$ 1,600,000700,400899,600990,000$ (90,400)In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, theAccounting Department has developed the following information:SalesVariable expenses as a percentage of sales.Traceable fixed expensesEast$ 440,000$ 280,00052%DivisionCentral$ 620,000$ 320,00036%West$ 540,00046%$ 195,000Required: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 $21,000 based on the belief that itwould increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net operatingincome increase (decrease) if the proposal is implemented?2-b. Would you recommend the increased advertising?

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Answered: Wingate Compa recent monthly Sales…

Business

Accounting

Wingate Compa recent monthly Sales Variable exp Contribution Fixer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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