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 $ 1,627,000 Variable expenses 517,490 Contribution margin 1,109,510 Fixed expenses 1,220,000 Net operating income (loss) $ (110,490 ) 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 $ 417,000 $ 670,000 $ 540,000 Variable expenses as a percentage of sales 47 % 23 % 31 % Traceable fixed expenses $ 267,000 $ 339,000 $ 199,000 Required: 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. 2-a. As a result of a marketing study, the president believes that sales in the West Division could be increased by 11% if monthly advertising in that division were increased by $24,000. Calculate the incremental net operating income.