EXERCISE 6-11 Segmented Income Statement 0-4 Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its must recent monthly contribution format income statement: Sales $1.000.000 Variable expenses 390.000 Contribution margin 610.000 Fored expenses 625.000 Net operating income fossi 115.000 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 Enst Central West Sales $250.000 $400,000 $350,000 Verable expenses as a percentage of sales 524 30% 40% Traceable fond expenses $160,000 $200.000 $175,000 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 S15,000 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