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 $1,586,000 Variable expenses 573,920 Contribution margin 1,012,080 Fixed expenses 1,113,000 Net operating income (loss) $100,920 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 $376,000 $660,000 $550,000 Variable expenses as a percentage (%) of sales 52% 29% 34% Traceable fixed expenses $276,000 $333,000 $210,000 Required: 1. Prepare a segmented income statement, using the contribution approach and proper format. (11 marks). Round percentages to 1 decimal, i.e. 1.5. Enter any losses as a negative number with a minus sign in front, i.e. -10. Total Company East Central West Amount 6 Amount Amount % Amount % 2. The Marketing Department has proposed increasing the West Division's monthly advertising by $26,000 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? (3 marks) Supporting Calculations Net Operating Income will by 3. Would you recommend the increased advertising? (1 marks)