510 EXERCISE 6-11 Segmented Income Statement LL06-4 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 $1,000,000 Variable expenses 390,000 Contribution margin 610,000 Fixed expenses 625,000 Net operating income (loss) $ (15.000) - Sales Variable expenses as a percentage of sales Traceable fixed expenses Division East Central West $250,000 $400,000 $350,000 52% 30% $160.000 $200,000 $175,000 40% Required: 1. Prepare a contribution format income statement segmented by divisions. 2. The Marketing Department has proposed increasing the West Division's monthly advertising by $15,000 based on the belief that it would increase that division's sales by 20%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented