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 Variable expenses Contribution margin Fixed expenses Net operating income (loss) S 1,639,000 623,080 1,015,920 1,118.000 $ (102,080) 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 $ 680,000 $ 333,000 East Central West Sales Variable expenses as a percentage of sales Traceable fixed expenses $ 409,000 $ 550,000 52 % 28 % 40 % $ 294,000 $ 207,000 Required 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. Division Total Company East Central West riable expenses Contribution margin raceable fixed expenses visional segment margin 0 $ Common fixed expenses not traceable to divisions et operating loss 2-a. As a result of a marketing study, the president believes that sales in the West Division could be increased by 20% if monthly advertising in that division were increased by $21,000. Calculate the incremental net operating income Incremental net operating income 2-b. Would you recommend the increased advertising? O No Yes