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) $ 1,598,000 703,200 894,800 984,000 $ (89,200) 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: East Sales $ 428,000 Variable expenses as a percentage of sales 60% $ 271,000 Traceable fixed expenses Required: 1. Prepare a contribution format income statement segmented by divisions. Division Central $630,000 West $540,000 34% 43% $ 328,000 $ 204,000 2-a. 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 20% 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? Req 1 Req 2A Req 2B Prepare a contribution format Income statement segmented by divisions. Division Total Company East Central West Req 1 Req 2A > this uestion by entering your answers in the tabs below. 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 20%. 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 by