Please donot provide answer in image formate thank you. Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses forsome time, as shown by its most recent monthly contribution format income statement:SalesVariable expensesContribution marginFixed expensesNet operating income (loss)In an effort to resolve the problem, the company would like to prepare an income statementsegmented by division. Accordingly, the Accounting Department has developed the followinginformation:SalesVariable expenses as a percentage of salesTraceable fixed expenses$ 1,606,000716,160889,840979,000$ (89,160)Req 1Req 2AEast$ 386,000$ 259,000Req 2B56%Complete this question by entering your answers in the tabs below.DivisionCentral$ 680,00037%$ 326,000Required: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$26,000 based on the belief that it would increase that division's sales by 19%. Assuming theseestimates are accurate, how much would the company's net operating income increase (decrease) ifthe proposal is implemented?2-b. Would you recommend the increased advertising?Prepare a contribution format income statement segmented by divisions.West$ 540,00046%$ 200,000

The contribution income statement provides a valuable tool for analyzing the profitability of a…

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) $ 1,606,000 716,160 Sales Variable expenses as a percentage of sales Traceable fixed expenses 889,840 979,000 $ (89,160) 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: East $ 386,000 56% $ 259,000 Division Central $ 680,000 37% $ 326,000 West $ 540,000 46 $ 200,000 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 $26,000 based on the belief that it would increase that division's sales by 19%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-h Would you recommend the increased advertising?

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) $ 1,606,000 716,160 Sales Variable expenses as a percentage of sales Traceable fixed expenses 889,840 979,000 $ (89,160) 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: East $ 386,000 56% $ 259,000 Division Central $ 680,000 37% $ 326,000 West $ 540,000 46 $ 200,000 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 $26,000 based on the belief that it would increase that division's sales by 19%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-h Would you recommend the increased advertising?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterE: Departmental Accounting

Section: Chapter Questions

Problem 3P

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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:
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