. 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 19%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented

1. ($98,560)

2a. Increase by $36,790

2b. Yes

Explanation:

1. Preparation of a contribution format income statement segmented by divisions

CONTRIBUTION FORMAT INCOME STATEMENT

East +Central+ West= Total Company

Sales

$351,000 +$650,000+$550,000=$1,551,000

Less Variable expenses $196,560+$156,000+$209,000=$561,560

(56%*$351,000=$196,560)

(24%*$650,000=$156,000)

(38%*$550,000=$209,000)

Contribution margin

$154,440+$494,000+$341,000=$989,440

Traceable fixed expenses $258,000+$331,000+$205,000=$794,000

Divisional segment margin-$103,560+$163,000+$136,000=$195,440

($154,440-$258,000=-$103,560)

($494,000-$331,000=$163,000)

($341,000-$205,000=$136,000)

Common fixed expenses not traceable to divisions$294,000

($1,088,000-$794,000)

Net operating loss($98,560)

($195,440-$294,000)

2a. Calculation for how much would the company's net operating income increase (decrease) if the proposal is implemented

Incremental West Division sales$104,500($550,000*19%)

X Contribution margin ratio62%

(1-38%)

=Incremental contribution margin$64,790

($194,500*62%)

Less incremental advertising expense$28,000

Net operating income will increase by$36,790

($64,790-$28,000)

2b. YES, I Would recommend the increased advertising.

answer; ///(c) the way a government controls the supply,availability,and value of money;

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough