5.value: 3.75 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, which follows: Sales $ 1,557,000 Variable expenses 602,630 Contribution margin 954,370 Fixed expenses 1,050,000 Net operating income (loss) $ (95,630) 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 $ 397,000 $ 650,000 $ 510,000 Variable expenses as a percentage of sales 59 % 30 % 34 % Traceable fixed expenses $ 295,000 $ 334,000 $ 198,000 Required: 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. 2-a. As a result of a marketing study, the president believes that sales in the West Division could be increased by 19% if monthly advertising in that division were increased by $28,000. Calculate the incremental net operating income. 2-b. Would you recommend the increased advertising? Yes No