Hi please help with the screenshots and this follow up question2) The Marketing Department has proposed increasing the West Division's monthly advertising by $21,000 based on the belief that it would increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase or decrease if the proposal is implemented? Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mostrecent monthly contribution format income statement:$ 1,650,000710,900SalesVariable expensesContribution marginFixed expenses939,1001,033,000Net operating income (loss)$(93,900)In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, theAccounting Department has developed the following information:DivisionEastCentralWestSales$ 430,000$700,000$520,000Variable expenses as a percentage of salesTraceable fixed expenses45%39%47%$296,000$ 321,000$205,000 Prepare a contribution format income statement segmented by divisions.DivisionTotal CompanyEastCentralWest2$$2$$

Answered: Hi please help with the screenshots and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Hi please help with the screenshots and this follow up question

2) The Marketing Department has proposed increasing the West Division's monthly advertising by $21,000 based on the belief that it would increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase or decrease if the proposal is implemented?

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:
$ 1,650,000
710,900
Sales
Variable expenses
Contribution margin
Fixed expenses
939,100
1,033,000
Net operating income (loss)
$
(93,900)
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
$ 430,000
$700,000
$520,000
Variable expenses as a percentage of sales
Traceable fixed expenses
45%
39%
47%
$296,000
$ 321,000
$205,000

Prepare a contribution format income statement segmented by divisions.
Division
Total Company
East
Central
West
2$
$
2$
$

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