Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,670,000 607,900 1,062,100 1,168,000 $ (105,900) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, Accounting Department has developed the following information: Sales Variable expenses as a percentage of sales Traceable fixed expenses Required: East Division Central $ 430,000 $ 680,000 West $ 560,000 49% 23% 43% $ 270,000 $ 325,000 $ 201,000 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 $27,000 based on the belief would increase that division's sales by 11%. 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 < Req 1 Req 2A >