Need help please!!

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, which follows:

Sales	$	1,539,000
Variable expenses		531,850
Contribution margin		1,007,150
Fixed expenses		1,108,000
Net operating income (loss)	$	(100,850)

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	$	369,000		$	640,000		$	530,000
Variable expenses as a percentage of sales		45	%		29	%		34	%
Traceable fixed expenses	$	290,000		$	337,000		$	210,000

Required:

1.	Prepare a contribution format income statement segmented by divisions, as desired by the president.

		Division
	Total Company	East	Central	West

2-a.

As a result of a marketing study, the president believes that sales in the West Division could be increased by 19% if monthly advertising in that division were increased by $24,000. Calculate the incremental net operating income

Incremental net operating income

2-b.

Would you recommend the increased advertising?

	Yes
	No