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) $ 1,542,000 596,580 945,420 1,040,000 $ (94,580) 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 $600,000 Sales East $432,000 Variable expenses as a percentage of sales Traceable fixed expenses 44% $293,000 $ 329,000 38% West $510,000 $ 195,000 35% 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 belief that it would 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?