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) $ 1,673,000 620,550 1,052,450 1,158,000 $ (105,550) 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 $ 433,000 Variable expenses as a percentage of sales Traceable fixed expenses 55% $ 266,000 Division Central $640,000 West $ 600,000 26% 36% $ 326,000 $193,000 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 $26,000 will 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 Print sales by 20% Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the unly advertising by $26,000 will increase that division's 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 28 The Marketing Department believes increasing the West Division's monthly advertising by $26,000 will 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? Note: Do not round intermediate calculations. Net operating income will by Show less &