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 Contribution margin Fixed expenses Net operating income (loan) $ 1,623,000 557.480 1,065,520 1,172,000 $. (206,480) 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: Sales Variable expenses as a percentage of sales Traceable fixed expenses East $383,000 561 5260,000 Division Central $650,000 214 5320,000 West 5590,000 35 $194,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-3. 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 10%. 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? Reg 1 Req 2A Req 2B Prepare a contribution format income statement segmented by divisions. Division Central Total Company East West 0 0 0 $ 0 $ 0 $ 0 $ 0 Ren Req 2A > 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 $26,000 based on the belief that it would increase that division's sales by 10%. 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? 16:30 Complete this question by entering your answers in the tabs below. ook Reg 1 Req 2A Reg 28 ences The Marketing Department has proposed increasing the West Division's monthly advertising by $26,000 based on the belle that it would increase that division's sales by 10%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? (Do not round Intermediate calculations.) Net operating income will increase