Question: Hi. Please see attached photo. Please answer ALL questions required 1, 2a and 2b. Thank you! Wingate Company. a wholesale distributor of eiectronic equipment, has
Hi. Please see attached photo. Please answer ALL questions required 1, 2a and 2b. Thank you!

Wingate Company. a wholesale distributor of eiectronic equipment, has been experiencing iosses for some time, as shown by its most recent monthly contribution format income statement: sales $ 1,638,999 variable expenses 656,429 Contribution margin 931,539 Fixed expenses 1,039,999 Net operating income [loss] $ [93,429] 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: Division East Central West Sales $403,999 $6?9,999 $569,999 variable expenses as a percentage of sales 54% 35! 36! Tracenble fixed expenses $256,999 $335,999 $204,999 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 itwould increase that division's sales by18'36. 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
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