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 Contration margin Fixed expenses Het operating income (10) $ 1,597,000 542.250 1,054,750 1.160.000 $ 105,2501 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 Central *650.000 350 1936.000 East 0367.000 458 3250,000 Varlante expense percentage of sales Traceable fixed expenses $500.000 30 $150,000 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 $26.000 based on the belief that would increase that division's sales by 19%. Assuming the estimates are accurate, how much would the company's net operating income increase (decrease the proposal is implemented? 2-6. Would you recommend the increased advertising Complete this question by entering your answers in the tabs below RG 1 Hea 2 H20 Reg 1 Req 2A Reg 28 The Marketing Department has proposed increasing the West Division's monthly advertising by $26,000 based on the belief that it would increase that division's sales by 19% 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 Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 2B Would you recommend the increased advertising? Yes No Red 2A