Check my work Check My Work button is now enabled3Item 6 Item 6 15 points 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 $ 1,589,000 Variable expenses 496,820 Contribution margin 1,092,180 Fixed expenses 1,201,000 Net operating income (loss) $ (108,820) 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 $ 369,000 $ 650,000 $ 570,000 Variable expenses as a percentage of sales 48 % 22 % 31 % Traceable fixed expenses $ 261,000 $ 323,000 $ 199,000 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 $30,000 based on the belief that it would increase that division's sales by 14%. 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?