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: $ 1,650,000...


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2) The Marketing Department has proposed increasing the West Division's monthly advertising by $21,000 based on the belief that it would increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase  or decrease if the proposal is implemented?


Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most<br>recent monthly contribution format income statement:<br>$ 1,650,000<br>710,900<br>Sales<br>Variable expenses<br>Contribution margin<br>Fixed expenses<br>939,100<br>1,033,000<br>Net operating income (loss)<br>$<br>(93,900)<br>In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the<br>Accounting Department has developed the following information:<br>Division<br>East<br>Central<br>West<br>Sales<br>$ 430,000<br>$700,000<br>$520,000<br>Variable expenses as a percentage of sales<br>Traceable fixed expenses<br>45%<br>39%<br>47%<br>$296,000<br>$ 321,000<br>$205,000<br>

Extracted text: 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: $ 1,650,000 710,900 Sales Variable expenses Contribution margin Fixed expenses 939,100 1,033,000 Net operating income (loss) $ (93,900) 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 $ 430,000 $700,000 $520,000 Variable expenses as a percentage of sales Traceable fixed expenses 45% 39% 47% $296,000 $ 321,000 $205,000
Prepare a contribution format income statement segmented by divisions.<br>Division<br>Total Company<br>East<br>Central<br>West<br>2$<br>$<br>2$<br>$<br>

Extracted text: Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West 2$ $ 2$ $

Jun 10, 2022
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