mework i recent monthly contribution format income statement Sales Variable expenses Contribution margin Fixed expenses $1, 688, 000 553, 660 34, 340 1,248,000 s (113, 660) Net operating income (loss) In an effort to resolve the problem, the company would like to prepare an income statement s Accounting Department has developed the following information: egmented by division. Accordingly, the Divi Vision East Central $448,000 $650,000 $590, 000 st Sales Variable expenses as percentage of sales Traceable fixed expenses 42% 30% $291,000 $327, 000 $201,000 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 $27,000 based on the belief that it would increase that division's sales by 18%. 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. Prev 3 of 20 Next >