I. Wingate Company, a wholesale distributor of videotapes, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement, which follows: Sales $2,000,000 Less variable expenses 780,000 Contribution margin 1,220,000 Less fixed expenses 1.250.000 Net operating income (loss) 30,000 In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the accounting department has developed the following information: Division East Central West Sales $500,000 $800,000 $700,000 Variable expenses as a percentage of sales 52% 30% 40% Traceable fixed expenses $320,000 $400,000 $350,000 Required: 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. Show both Amount and Percent columns for the company as a whole and for each division. 2. As a result of a marketing study, the president believes that sales in the West Division could be increased by 20% if monthly advertising in that division were increased by $15,000. Would you recommend the increased advertising? Show computations. II. Han Products manufactures 15,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for S-6 is as follows: Direct materials $14.00 Direct labor 10.00 Variable manufacturing overhead 3.00 Fixed manufacturing overhead 6.00 Total cost per part... $33.00