Wingate Company, a wholesale distributor of electronic equipment has been experiencing losses for some Ume, as shown by its most recent monthly contribution format Income statement Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,587,600 596,750 990, 250 1,089,000 $ (98,750) 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 $680,000 East $ 357,000 55% $ 289,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses 33% West $550,000 327 $192,880 $338,000 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 bellef that it would increase that division's cales by 16%. Assuming these estimates are accurate, how much would the company's net operating Income Increase (decrease) If the proposal is Implemented? 2-6. Would you recommend the increased advertising? Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West 0 0 0 0 Sales Variable expenses Contribution margin Traceable fixed expenses Divisional segment margin Common fixed expenses not traceable to divisions Net operating loss 0 S 0 S 0 S 0 s 0 Reg 1 Req 2A Reg 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 16%. 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