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) 1,546,888 588,288 1,837,728 1,141,898 S (183,280) 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 East West Sales Variable expenses as a percentage of sales Traceable fixed expenses 4 3% 28% 32% $288,888 $338,88 25,9e0 Required: 1. Prepare a contribution format Income statement segmented by diMslons. 2-a. The Marketing Department has proposed increasing the West DIvIsion's monthly advertising by $24,000 based on the bellef that It would increase that dMslon's sales by 14%. 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 Req 1 Req 2A Req 2B Prepare a contribution format income statement segmented by divisions. Divisiorn Total Company East Central West C Reg 1 Req 2A > Req 1 Req 2A Req 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 based on the belief that it would increase that division's sales by 14%. 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.) et operating income will Req 1 Req 2A Req 2B Would you recommend the increased advertising? Yes