Business, 13.11.2019 23:31 morganmsaylor1365

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 $ 1,593,000 variable expenses 643,060 contribution margin 949,940 fixed expenses 1,045,000 net operating income (loss) $ (95,060) 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 $ 413,000 $ 670,000 $ 510,000 variable expenses as a percentage of sales 52 % 35 % 38 % traceable fixed expenses $ 263,000 $ 340,000 $ 194,000 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 $22,000 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?

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Wingate company, a wholesale distributor of electronic equipment, has been experiencing losses for s...

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