Seament Repert 1S peints racey Company, a wholesale distributor of electronic equipment, has boen experiencing losses for some time, as shown by its most recent month contribution format income statement, which follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $1,000,000 390.000 610,000 In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accondingly, the Accounting Department has developed the following information: West $350,000 40% FastCentral ariable Traceable fixed expenses $160,000 $200,000 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. Division Central otal West Sales Variable Contribution Traceable fixed Divisional segment margin Common fixed expenses not traceable to divisions Net operating income (loss) 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 $30,000. Would you recommend the increased advertising? Show computations to support your answer (that is, tell me the effect on the divisional segment margin)