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) $ 1,590,000 598,500 991,500 1,091,000 $ (99,500) 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: West $520,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses Division Central $670,000 31% $325,000 East $ 400,000 47% $253,000 $197,000 Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West The Marketing Department has proposed increasing the West Division's monthly advertising by $21,000 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.) Net operating income will by Would you recommend the increased advertising? Yes TO No