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: Salos 1,571,000 559 880 1,011,120 Contribution margin Fluxed expenses Net operating income (loss) $(100,880) 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 East West Sales Variable expenses as a percentage of sales Traceable fxed expenses $ 351,000 680,000 560,000 48% 33% 31% $ 265,000 321,000 197,000 Required: 1. Prepare a contribution format income statement segmented by divisions, as desired by the president Division Central Total Company East West 2-a As a result of a marketing study, the president believes that sales in the West Division could be increased by 19% Calculate the incremental net operating income. monthy advertising in that division wem increased by S220 net operaing 2-b. Would you recommend the increased advertising? No Yes