I am so confused and dont know where to start. please help. Dont Understand

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 $ 1,609,000 Variable expenses 570,030 Contribution margin 1,038,970 Fixed expenses 1,143,000 Net operating income (loss) $ (104,030) 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 $359,000 $670,000 $580,000 Variable expenses as a percentage of sales 47% 27% 38% Traceable fixed expenses $299,000 $327,000 $191,000 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 $28,000 based on the belief that it would increase that division's sales by 12%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) ifthe proposal is implemented? 2-b. Would you recommend the increased advertising