Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,682,000 554,080 1,127,920 1,241,000 $ (113,080) In an effort to resolve the problem, the company wants to prepare an income statement segmented by division. Accordingly, the Accounting Department provided the following information: Sales East $ 432,000 Variable expenses as a percentage of sales Traceable fixed expenses 54% Division Central $ 660,000 20% West $ 590,000 32% $ 299,000 $ 340,000 $ 193,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department believes increasing the West Division's monthly advertising by $23,000 will increase that division's sales by 16%. 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B The Marketing Department believes increasing the West Division's monthly advertising by $23,000 will increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? Note: Do not round intermediate calculations. Net operating income will by < Req 1 Req 2B > Show less