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Check rn 7 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: 7.69 points Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ (99,280) $1,622,000 624,280 997,720 1,097,000 eBook Hint 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 Print Division Central $442,000 $650,000 $530,000 East West Sales References Variable expenses as a percentage of sales Traceable fixed expenses $274,000 $330,000 $206,000 54% 21% 47% 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 $25,000 based on the belief that it would increase that division's sales by 11%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Prepare a contribution format income statement segmented by divisions Division Total Compan East Central West Sales 1,622,000 ariable expenses Contribution margin 624,280 997,720 0 raceable fixed expenses Divisional segment margin Common fixed expenses not traceable to divisions 997,720$ 0 $

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