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 Fixed expenses Contribution margin Net operating income (loss) $ 1,634,000 604, 120 1,029,880 1,133,000 $ (103,120) 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: " nces Sales East $ 444,000 Division Central $610,000 West $ 580,000 Variable expenses as a percentage of sales Traceable fixed expenses 43% 24% 46% $ 295,000 $ 326,000 $ 191,000 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 $25,000 based on the belief that it would increase that division's sales by 15%. 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?