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Exercise 6-11 (Algo) Segmented Income Statement (L06-4) 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 Salon Variable expenses Contribution margin Pixed expenses Het operating income (los) $ 1,575,000 666,150 908,850 1,000,000 $ (91,150) 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: Sales Variable expenses as a percentage of wales Teaceable fixed expenses $395,000 456 $270,000 Division Central $650,000 361 $320,000 $530,000 888 5203,000 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 $27,000 based on the belief that would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-6. Would you recommend the increased advertising? 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 $27000 based on the belief that it would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net operating Income increase (decrease) If the proposal is implemented? 2-6. Would you recommend the increased advertising Complete this question by entering your answers in the tabs below. Req1 Rang 2 Reg 23 Prepare a contribution format income statement segmented by divisions DIV Total Company Reg 2A > Complete this question by entering your answers in the tabs below Req1 Req 2A Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $27,000 based on the beller that it would increase that division's sales by 13%. 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.) Saloperiting Income will Req20 >

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