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	$	1,586,000
Variable expenses		662,480
Contribution margin		923,520
Fixed expenses		1,016,000
Net operating income (loss)	$	(92,480)

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
	East			Central			West
Sales	$	436,000		$	610,000		$	540,000
Variable expenses as a percentage of sales		48	%		38	%		41	%
Traceable fixed expenses	$	253,000		$	329,000		$	208,000

Required:

1.	Prepare a contribution format income statement segmented by divisions, as desired by the president.

2-a.	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 $24,000. Calculate the incremental net operating income.