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 Not operating income (1068) $ 1,580,000 659,800 920,200 1,012,000 $ (91,800) 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 $420,000 614 $256,000 Division Central $620,000 326 $340,000 West $540,000 380 $196,000 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 12%. 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? 2-b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Req1 Reg 2A Req 2B Prepare a contribution format Income statement segmented by divisions. Division Total Company East Central West 0 0 0 0 $ 0 $ 0 $ 0 0 Re Red 2A > Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 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 12%. 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.) Not operating Income will by ( Req1 Reg 28 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Would you recommend the increased advertising? OYes ONO