Prepare a contribution format income statement segmented by divisions, as desired by the president.

wilcm region? Why? ses to the East and West regions a wholesale distributor of electronic equipment , has been experiencing losses for some Wingate Company, EXERCISE 6-11 Segmented Income Statement PCS.4) aine, as shown by its most recent monthly contribution format income statement, which follows: Sales $1,000,000 Variable expenses 390,000 Contribution margin 610,000 Fixed expenses 625,000 Net operating income (loss) $ (15,000) TAKE TWO Variable e perce Centr In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly , the Accounting Department has developed the following information: Division East Central West Sales Variable expenses as a percentage of sales Traceable fixed expenses $250,000 52% $160,000 $400,000 30% $200,000 $350,000 40% $175,000 Required: 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. 2. As a result of a marketing study, the president believes that sales in the West Division could be increased by 20% if monthly advertising in that division were increased by $15,000. Would you recommend the increased advertising? Show computations to support your answer. rok 20631