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Olenka [21]
2 years ago
8

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mo

st recent monthly contribution format income statement:
Sales $ 1,546,000
Variable expenses 573,480
Contribution margin 972,520
Fixed expenses 1,070,000
Net operating income (loss) $ (97,480)
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 $ 416,000 $ 630,000 $ 500,000
Variable expenses as a percentage of sales 48 % 26 % 42 %
Traceable fixed expenses $ 282,000 $ 324,000 $ 206,000
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 $28,000 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?
Business
1 answer:
mestny [16]2 years ago
3 0
I'm not sure to be honest
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Answer:

The correct answer is option e.

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3 years ago
What is input, conversion process, and output
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Hello!

Think of a machine. You put something in. This is the input. The conversion process is whatever goes on inside the machine. Let's say that the machine will spray paint a vase you put into it.  The vase is the input. The spray painting is the conversion process. What comes out of the machine, or the result, is the output. In our example it would be the painted vase.

The conversion process changes the input into the output.

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6 0
3 years ago
After reviewing the existing data on seasonal spending by his company's customers, Marvin decided he needed new information coll
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3 0
2 years ago
When presenting negative news, you should Multiple Choice avoid offering an alternative solution to the problem. help the reader
Contact [7]

Answer:

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There needs to be an explanation of the reasons for the negative message, which ensures greater objective understanding of the facts and understanding.

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3 years ago
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Answer:

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