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:

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: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,569,000 649,160 919,840 1,012,000 $ (92,160) 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 $ 379,000 54% $ 264,000 Division Central $ 660,000 28% $ 333,000 West $ 530,000 49% $ 202,000 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 $29,000 based on the belief that it would increase that division's sales by 10%. 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 Req 2A Req 2B Prepare a contribution format income statement segmented by divisions. Total Company East $ 1,569,000 $ 379,000 649,160 204,660 Division Central West $ 660,000 $ 530,000 184,800 259,700 Sales Variable expenses Contribution margin 919,840 174,340 475,200 270,300 799,000 264,000 333,000 202,000 120,840 $ (89,660) $ 142,200 $ 68,300 Traceable fixed expenses Divisional segment margin Common fixed expenses not traceable to divisions Net operating loss 213,000 (92,160) $ Req 1 Req 2A > Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $29,000 based on the belief that it would increase that division's sales by 10%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? (Do not round intermediate calculations.) Net operating income will increase by $ 1,970