Check my work Check My Work button is now enabled3Item 3 Item 3 2.14 points Exercise 6-11 Segmented Income Statement [LO6-4] 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 $ 1,535,000 Variable expenses 494,400 Contribution margin 1,040,600 Fixed expenses 1,145,000 Net operating income (loss) $ (104,400) 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 East Central West Sales $ 375,000 $ 630,000 $ 530,000 Variable expenses as a percentage of sales 44 % 22 % 36 % Traceable fixed expenses $ 263,000 $ 325,000 $ 201,000 Required: 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 $20,000 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? 2-b. Would you recommend the increased advertising?