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: 1,549,000 Sales Variable expenses 513,310 1,035,690 Contribution margin 1,139,000 Fixed expenses Net operating income (loss) $ (103,310) 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 Central $379,000 $650,000 $520,000 West Sales Variable expenses as a 49% 24% 33% Traceable fixed expenses $299,000 $329,000 $192,000 Required: 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. Division Total Company East Central West 2-a.As a result of a marketing study, the president believes that sales in the West Division could be increased by 10% if monthly advertising in that division were increased by $27,000. Calculate the incremental net operating income. Incremental net operating income 2-b.Would you recommend the increased advertising? O No Yes