Exercise $4-11($Algo$)$ Segmented Income Statement $[$LO$4-4]$

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:

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:

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 $\backslash$$$21,000$ based on the bellef that it would increase that division's sales by $\backslash (20\backslash \%\backslash ).$ 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 $2$B

Prepare a contribution format income statement segmented by divisions.

The Marketing Department has proposed increasing the West Division's monthly advertising by $\backslash (\backslash$$ $21,000\backslash )$ based on the belief that it would increase that division's sales by $\backslash (20\backslash \%\backslash ).$ Assuming these estimates are accurate, how much would the company's net operating income increase $($decrease$)$ if the proposal is implemented?

Note: Do not round intermediate calculations. Req $\backslash (2$ A $\backslash )$

Req $2$B

Would you recommend the increased advertising?

Would you recommend the increased advertising?