Question: In an effort to tesolve the problem, the compony would like to prepere an income statement segmented by division. Accordingly phe Accounting Department has developed
In an effort to tesolve the problem, the compony would like to prepere an income statement segmented by division. Accordingly phe Accounting Department has developed the following information. Requited: 1. Prepore a contribution formst income statementsegmented by divisions 2:a. The Markesing Deportment hos proposed incrasing the West Division's monthy advertising by $24.000 bosed on the betief that it would inciease that divisionis sales by 19 s. Assuming these estimotes bre acturete. how much would the compony net operating income increase (dectease) it the proposal is implemented? 2 b. Would you recommend the increased odvertsing? Reg 1 Reg 2A Req 28 Prepare a contribution format income statement segmented by divisions. The Marketing Department has proposed increasing the West Divion's monthly advertising by 324,000 based on the belief that is would increase that divion's soles by 194 . Assuming these estimates are accurate, how much would the company's that is would increase that divions sales by 194 , Assuming these estimates are accurace, how much would the compla net operating income increase (decrease) if the proposal is implemented? (Do not cound intermediate calculations.) Would you recommend the increated advertising
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