Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,566,000 559,040 1,006,960 1,108,000 $ (101,040) 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: Sales East $ 356,000 Division Central $ 650,000 West $ 560,000 Variable expenses as a percentage of sales Traceable fixed expenses 54% 28% 33% $ 251,000 $ 338,000 $ 200,000 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 $29,000 will increase that division's sales by 13%. 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. Division Total Company East Central West SA $ 0 0 0 0 0 $ 0 $ 0 $ 0 0 The Marketing Department believes increasing the West Division's monthly advertising by $29,000 will increase that division's sales by 13%. 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. Net operating income will by Show less Would you recommend the increased advertising?