Question: please help im very confused with getting these numbers correct Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time,

please help im very confused with getting these numbers correct
please help im very confused with getting these numbers correct 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

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 Sales Variable expenses Contribution margin Fixed expenses Net operating Income (loss) 1,556,000 528, 148 1,827,860 1.131.ee $ (103,140) 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 5 366,000 5.620,800 $ 579,00 Variable expenses as a percentage of sales 49% 25% 342 Traceable fixed expenses $ 258, 800 $ 339,000 $ 200,000 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 13%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 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 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 reconnued the increased advertising? Complete this question by entering your answers in the tabs below. Regt Reg 2A Reg ze Prepare a contribution format income statement segmented by divisions. Division Central East West Total Company 1.550.000 528.140 1027.300 Variable expenses Contribution margin Tractiefed expenses Divisional segment margin Common fed expenses noticeable to divisions Tot operating income 1.027.000 4 1.027.300 Required: 1. Prep ontribution format income statement segmented by divisions. 2-a. The ting Department has proposed increasing the West Division's monthl rtising by $27,000 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 questi entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 W 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 13%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? (Do not found intermediate calculations.) Net operating income will by

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!