2060 CH 6 HW EX 6-11 FALL 2017 6 Hel 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 Variable expenses Contribution margin Fixed expenses Net operating income (loss) s 1,603,000 589,550 1,013,450 1,115,000 $ (101,550) 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 $383,000 $670,000 $550,000 $251,000 $336,000 $205,000 361 Variable expenses as a percentage of sales Traceable fixed expenses Required 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $26,000 based on the bellef that it would increase that division's sales by 17% Assuming these estimates are accurate, h income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? ow muchwould the company's net operating Complete this question by entering your answers in the tabs below