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 Contribution margin Fixed expenses Net operating income (loss) 1,596,000 662,280 933,720 1,027,000 (93,280) $ 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 East $ 436,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses West $ 540,000 50 % $ 204,000 $ 620,000 26 % $ 339,000 53 % 289,000 $ Required: 1. Prepare a contribution format income statement segmented by divisions, as desired by the president. Division Total Company East Central West 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 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 $29,000. Calculate the incremental net operating income. Incremental net operating income 2-b. Would you recommend the increased advertising? No Yes