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) 11,640,000 643,300 996, 700 1,096,000 $ 99,300) 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: $450,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses Division Central $600,000 251 $335,000 West $590,000 470 5194,000 $281,000 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? Reg 1 Req 2A Req 2B Prepare a contribution format income statement segmented by divisions. East $450,000 Division Central $ 600,000 West $ 590,000 Total Company $ 1,640,000 643,300 996,700 Sales Variable expenses Contribution margin Traceable fixed expenses Divisional segment margin Common fixed expenses not traceable to divisions Net operating loss 450,000 600,000 590,000 281,000 335,000 194,000 $ 169,000 $ 265,000 $ 396,000 996,700 $ 996,700 Req 1 Reg za Reg 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the belier that it would increase that division's sales by 12%. Assuming these estimates are accurate, how much would the company net operating income increase (decrease) if the proposal is implemented? (Do not round intermediate calculations.) Net operating income will Reg 1 Req 2A Reg 2B Would you recommend the increased advertising? Yes ONO