5 Exercise 6-11 (Algo) Segmented Income Statement (L06-4) 2 Do tes 00 e 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 sale 5 1.659,000 VaRable en 62.040 Contribution margin 980,060 Piede 1.020,000 Het operating income) 5.417.1401 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 DELS fast Sales Central Variable expenses as a percent of sales 14.00 $ 600,000 * 180,000 461 311 Traceable fixed #333,000 * 100.000 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 $22.000 based on the belief that it would increase that division's sales ty 13%. Assuming these estimates are accurate, how much would the company's not operating income increase (decrease the proposal is implemented? 2-6. Would you recommend the increased advertising? Benes Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Mag 28 Prepare a contribution format income statement segmented by visions Division General Total Company East West HYU. 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 $22,000 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. Reg 1 Reg 2A Reg 20 Prepare a contribution format income statement segmented by divisions. Division Total Company Central West 1,650,000 $ 429,000 5 640,000 $ 500.000 678,940 980,000 429,000 640,000 590,000 Sales Variable expenses Contribution margin Traceable fixed expenses Divisional segment margin Common foxed expenses not traceable to divisions Net operating income 980,060 $ 429,000 S 640,000 S 590,000 $ 980,060 Reg 2 > 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 $22,000 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-b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Req! Reg 2A Req 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $22,000 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? (Do not round intermediate calculations.) Net operating income will by Required: 1. Prepare a contribution format income statement segmented by divisions. 2.0. The Marketing Department has proposed increasing the West Division's monthly advertising by $22,000 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-b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Regt 28 Rea 2 Would you recommend the increased advertising? You ONO