Segment Report (15 points) Tracey Company, a wholesale distributor of electronic equipment, has been for some time, as shown by its most recent month contribution format follows: income statement, which Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $1,000,000 610,000 S (15.000 naneffort to isolate the problem, the president hasa ked for an division. Accordingly, the Accounting Department has developed income statement segmented by the following information: West Sales Variable expenses as a percentage of sales Traceable fixed expenses East $250,000 52% Central $400,000 30% 350,000 40% $175,000 S160,000$200,000 1. Prepare a contribution format income statement segmented by divisions, as desired by the president Division Central Total Company East West Sales Variable Contribution margin 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)