VLIVULVE VI LILL VELMIMISM ***Yu Company, 1 recent monthly contribution format income statement: $ Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) 1,606,000 640,980 965,020 1,062,000 (96,980) ES $ Book Print In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: ferences Division Central $660,000 31% $ 337,000 East $356,000 48% $ 287,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses West $ 590,000 45% $191,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $22,000 based on the belief that it would increase that division's sales by 13%. 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? Prem of 4 Next > aw