Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as shown by its most recent monthly

contribution format income statement:

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:

Required:

Prepare a contribution format income statement segmented by divisions.

$2-$a$.$ The Marketing Department believes increasing the West Division's monthly advertising by $$15,000$ 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?