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	$	1,607,000
Variable expenses		575,850
Contribution margin		1,031,150
Fixed expenses		1,134,000
Net operating income (loss)	$	(102,850)

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:

	Division
	East			Central			West
Sales	$	417,000		$	650,000		$	540,000
Variable expenses as a percentage of sales		45	%		24	%		43	%
Traceable fixed expenses	$	278,000		$	321,000		$	198,000

1.	Prepare a contribution format income statement segmented by divisions, as desired by the president.

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 $29,000. Calculate the incremental net operating income.

2-b.	Would you recommend the increased advertising?

(Just need the answer please. Thank you.)