Hello. Please see attached picture. Please answer ALL questions required 1, 2a and 2b. Thank you very much!

Win-gate 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 5 1,603,000 Variable expenses 553,290 Contribution margin 1 , O49 , '1' ll] Fixed expenses 1 , 155' 000 Net operating incmne (loss) 5 (105,290) [ 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 $353,!!m) $650,!!0 $S,0 Variable expenses as a percentage of sales 43% 23% 42% Traceable fixed expenses $232,000 $325,000 $197,000 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 $22,000 based on the belief that it would increase that division's sales by 18%. 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