Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $1,623,000 624,480 998,520 1,098,000 $ (99,480) 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: Sales Variable expenses as a percentage of sales Traceable fixed expenses East $393,000 56% $290,000 Division Central $640,000 3ex $332,000 West $590,000 36% $ 194,000 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 $24,000 based on the belief that it would increase that division's sales by 15%. 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 20 Prepare a contribution format income statement segmented by divisions. Division Total Company East Central West Reg 1 Reg 2 Req 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 based on the belief that it would increase that division's sales by 15%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? (Do not round intermediate calculations.) Not operating income will erences Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Rea e Would you recommend the increased advertising? Yes No