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) 1,642,000 655,880 986,120 1,085.000 (98,880) $ 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: Sales Variable expenses as a percentage of sales Traceable fixed expenses East $ 392,000 54 % $ 276.000 Division Central $ 670,000 36 % $ 336.000 West $ 580,000 35 % $ 195,000 Required: 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. Division Central Total Company East West 2-a. As a result of a marketing study, the president believes that sales in the West Division could be increased by 17% if monthly advertising in that division were increased by $29.000 Calculate the incremental net operating income. Incremental net operating income 2-b. Would you recommend the increased advertising? O Yes O No