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, which follows: $ Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) 1,551,000 549,400 1,001,600 1,102,000 (100,400) $ In an effort to isolate the problem, the president has asked for 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 $ 391,000 50 % $ 275,000 Division Central $630,000 20 % $331,000 * West $530,000 43% $ 209,0 Required: 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. Division Central Total Company East West $ 0 2-a. As a result of a marketing study, the president believes that sales in the West Division could be increased by 17% if monthly advertising in that division were increased by $25,000. Calculate the incremental net operating income. Incremental net operating income