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 $ 1,550,000 variable expenses 618,000 contribution margin 932,000 fixed expenses 1,025,000 net operating income (loss) $ (93,000) 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 $ 400,000 $ 610,000 $ 540,000 variable expenses as a percentage of sales 49% 32% 42% traceable fixed expenses $ 275,000 $ 327,000 $ 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 $21,000 based on the belief that it would increase that division's sales by 18%. 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?