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##### """EXERCISE 12?15 Segmented Income Statement [LO1]...

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"""EXERCISE 12?15 Segmented Income Statement [LO1] Wingate Company, a wholesale distributor of videotapes, has been experiencing losses for some time, 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) 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 \$250,000 \$400,000 \$350,000 Variable expenses as a percentage of sales 52% 30% 40% Traceable fixed expenses \$180,000 \$200,000 \$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. " - Sent to Accounting Expert Tutor on 1/29/2011 at 2:25pm "This was the start of the segment income statement" Division East Central West \$ 250,000 \$ 400,000 \$ 350,000 130,000 120,000 140,000 120,000 280,000 210,000 \$ 160,000 \$ 200,000 \$ 175,000 -40,000 80,000 35,000,I have 2 assignments that I ask for help, one is due tonite and the other one is due tomorrow, that is why I submitted them separate from each other yesterday. I started this assignment but I just need to understand problem 2 of this assignment thanks,Hi, You are still working on the second part of this assignment, right. thanks

Paper#9637 | Written in 18-Jul-2015

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