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:

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 $ 1,587,000 547,360 Contribution margin Fixed expenses 1,039,640 1,144,000 Net operating income (loss) S (104,360) 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 Central S407,000 $610,000 $570,000 East West Sales Variable expenses as a percentage of sales Traceable fixed expenses 58% 23% $291,000 $333,000 $195,000 Required 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. Division Total Company East Central West 0 S 2-a. As a result of a marketing study, the president believes that sales in the West Division could be increased by 10% if monthly advertising in that division were increased by $22,000. Calculate the incremental net operating income Incremental net operating income