Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as shown by its most recent monthly contribution format income statement:

Sales	$ 1,658,000
Variable expenses	588,100
Contribution margin	1,069,900
Fixed expenses	1,177,000
Net operating income (loss)	$ (107,100)

In an effort to resolve the problem, the company wants to prepare an income statement segmented by division. Accordingly, the Accounting Department provided the following information:

	Division
East	Central	West
Sales	$ 398,000	$ 680,000	$ 580,000
Variable expenses as a percentage of sales	55%	27%	32%
Traceable fixed expenses	$ 287,000	$ 328,000	$ 210,000

Required:

1. Prepare a contribution format income statement segmented by divisions.

2-a. The Marketing Department believes increasing the West Division's monthly advertising by $24,000 will 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?

2-b. Would you recommend the increased advertising?

Don't mind the numbers. That's just me trying to solve it.

Prepare a contribution format income statement segmented by divisions. The Marketing Department believes increasing the West Division's monthly advertising by $24,000 will 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? Note: Do not round intermediate calculations. d the increased advertising