Wingate Company, a wholesale distributor of electronic equipment, has been experlencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $1,503,000 622,510 880,490 969,000 $(88,510) 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: Division East Central Sales West $353,000 $610,000 $540,000 Variable expenses as a percentage of sales 574 315 434 Traceable fixed expenses $250,000 $321,000 $204,000 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 $21,000 based on the belief that it would increase that division's sales by 20%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) If the proposal is implemented? 26. Would you recommend the increased advertising Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 21 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: Sales Variable expenses as a percentage of sales Traceable fixed expenses East $353,000 574 $250,000 Division Central $610,000 319 $321,000 West $540,000 434 $284,000 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 $21,000 based on the belief that it would increase that division's sales by 20%. 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Would you recommend the increased advertising? Yos No