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 $ 1,520,000 Variable expenses 525,500 Contribution margin 994,500 Fixed expenses 1,094,000 Net operating income (1055) $ (99,500) 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 East Central West Sales 5 370,000 $ 640,000 $ 510,000 Variable expenses as a percentage of sales 45% 29% 34% Traceable fixed expenses 5 278,000 $ 326,000 $ 208,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2a. The Marketing Department has proposed increasing the West Division's monthly advertising by $27,000 based on the belief that it would increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 23 Prepare a contribution format income statement segmented by divisions. Sales $ 1,520,000 Variable expenses (525,500) Contribution margin 994,500 0 0 0 raceable xed expenses Divisionalsegmentmargin 994,500 $ 0 $ 0 $ 0 Common xed expenses not traceable to divisions et operating loss $ 994,500 Reg ZA > Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $27,000 based on the belief that it would increase that division's sales by 16%. 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. Show lessA Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Would you recommend the increased advertising? OYes ONO