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 expensesContribution marginFixed expensesNet operating income loss$ 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: DivisionEastCentralWestSales$ $ $ Variable expenses as a percentage of salesTraceable fixed expenses$ $ $

Required:

 Prepare a contribution format income statement segmented by divisions

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

b Would you recommend the increased advertising?  

Answer rating: 100% (QA)

1 Contribution Format Income Statement Segmented by Divisions East Central West Total Sales 411000 6... View the full answer