Question: Please show all work. Thanks common fixed expense not traceable to division is my issue. I dont know where to get that data. Exercise 6-11

Please show all work. ThanksPlease show all work. Thanks common fixed expense not traceable to division

is my issue. I don"t know where to get that data. Exercisecommon fixed expense not traceable to division is my issue. I don"t know where to get that data.

6-11 (Algo) Segmented Income Statement [LO6-4] Wingate Company, a wholesale distributor of

Exercise 6-11 (Algo) Segmented Income Statement [LO6-4] 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: Sales. Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,521,000 625,260 895,740 985,000 $ (89,260) 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: Sales Variable expenses as a percentage of sales Traceable fixed expenses East $361,000 46% $ 293,000 Division Central $ 620,000 34% $ 333,000 Complete this question by entering your answers in the tabs below. West $ 540,000 $ 204,000 46% 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 $22,000 based on the belief that it would increase that division's sales by 15%. 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? 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 $22,000 based on the belief that it would increase that division's sales by 15%. 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 2A Sales Variable expenses Req 2B Prepare a contribution format income statement segmented by divisions. Contribution margin Traceable fixed expenses Divisional segment margin Common fixed expenses not traceable to divisions Net operating loss West $540,000 248,400 291,600 204.000 87,600 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 $22,000 based on the belief th it would increase that division's sales by 15%. 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 2A Req 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $22,000 based on the belief that it would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? (Do not round intermediate calculations.) Net operating income will by

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