Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as shown by its most recent

monthly contribution format income statement:

In an effort to resolve the problem, the company wants to prepare an income statement segmented by division. Accordingly, the Accounting Department provided the following information:

Required:

Prepare a contribution format income statement segmented by divisions.

$2-$a$.$ The Marketing Department believes increasing the West Division's monthly advertising by $$20,000$ will 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?

Required $1$:

Prepare a contribution format income statement segmented by divisions. Please upload entire income statement chart!

Required $2$:

The Marketing Department believes increasing the West Division's monthly advertising by $$20,000$ will 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? Note: Do not round intermediate calculations.

Required $2$B:

Would you recommend the increased advertising? Yes or no question. Thank you so much! If correct, I will $100\%$ give a thumbs up$!$