Exercise 6-11 Segmented Income Statement [L06-4) 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 Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,588,000 575, 480 1,012,680 1.114, eee $ (101,400) 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 $428,eee $610, eee $55e,eee Variable expenses as a percentage of sales 45% 33% 33% Traceable fixed expenses $262,00 $326,eee $207, eee 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 $28.000 based on the belief that it would increase that division's sales by 17%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-6. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Prepare a contribution format income statement segmented by divisions. Total Company East 1,588,000 $ 428,000 Division Central West S 610.000 $ 550,000 Sales 1,588,000 428,000 610,000 550.000 Variable expenses Contribution margin Traceable fixed expenses Divisional segment margin Common foed expenses not traceable to divisions Net operating loss 262.000 1,588,000 $ 168,000 320,000 $ 284,000 207.000 $ 343,000 $ 1.588.000