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 (loss) $ 1,610,000 697,300 912,700 1,004,000 $ (91,300) 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 $380,000 42% $289,000 Division Central $650,000 39% $329,000 West $580,000 49% $199,000 es 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 19%. 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? Complete this question by entering your answers in the tabs below. Reg 1 Req 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 Req 2A > ales Wariable expenses as a percentage of sales Traceable fixed expenses $380,000 42% $289,000 $650,000 39% $329,000 $580,000 49% $199,000 equired: Prepare a contribution format income statement segmented by divisions. -a. The Marketing Department has proposed increasing the West Division's monthly advertising by $26,000 based on th would increase that division's sales by 19%. Assuming these estimates are accurate, how much would the company's ne ncome increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? Complete this tion by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B 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 19%. 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 by