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	$	1,594,000
Variable expenses		612,300
Contribution margin		981,700
Fixed expenses		1,080,000
Net operating income (loss)	$	(98,300)

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

EastCentralWest Sales$394,000 $680,000 $520,000 Variable expenses as a percentage of sales 55% 23% 46% Traceable fixed expenses$292,000 $322,000 $198,000

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

2a.

As a result of a marketing study, the president believes that sales in the West Division could be increased by 19% if monthly advertising in that division were increased by $30,000. Calculate the incremental net operating income.

Incremental net operating income