5 points 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) $1,598,000 607,220 990,780 1,090,000 $ (99,220) eBook Hint 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: Ask Print Sales Reference Variable expenses as a percentage of sales Traceable fixed expenses Required: East $388,000 Division Central $620,000 West $590,000 449 399 336 $296,000 $322,000 $191,000 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 $21,000 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Prepare a contribution format income statement segmented by divisions. Division 5 points eBook Hint Ask Print References Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West+ Req 2A > Dints eBook Hint Ask $191,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing bepartment 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 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? Complete this question by entering your answers in the tabs below. Print References Req 1 Req 2A Req 2B 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 13%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? (Do not round intermediate calculations.) Net operating income will 5 points eBook Hint Ask Print References Sales Variable expenses as a percentage of sales Traceable fixed expenses Required: East $388,000 44 $296,000 DIVISION Central $620,000 5322,000 Wwwt $590,000 396 339 $191,000 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 $21,000 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28: Would you recommend the increased advertising? Yes ONO