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: Sales $ 1,534,000 Variable expenses 511,360 Contribution margin 1,022,640 Fixed expenses 1,125,000 Net operating income (loss) $ (102,360) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $ 374,000 $ 660,000 $ 500,000 Variable expenses as a percentage of sales 44 % 23 % 39 % Traceable fixed expenses $ 259,000 $ 330,000 $ 198,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $23,000 based on the belief that it would increase that division's sales by 11%. 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?