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In: AccountingWingate Company, a wholesale distributor of electronicequipment, has been experiencing losses for some time, as...Wingate Company, a wholesale distributor of electronicequipment, has been experiencing losses for some time, as shown byits most recent monthly contribution format income statement:Sales$1,552,000Variable expenses587,860Contribution margin964,140Fixed expenses1,061,000Net operating income (loss)$(96,860)In an effort to resolve the problem, the company would like toprepare an income statement segmented by division. Accordingly, theAccounting Department has developed the following information:DivisionEastCentralWestSales$362,000$660,000$530,000Variable expenses as a percentage of sales48%25%47%Traceable fixed expenses$250,000$331,000$203,000Required:1. Prepare a contribution format income statement segmented bydivisions.2-a. The Marketing Department has proposed increasing the WestDivision's monthly advertising by $26,000 based on the belief thatit would increase that division's sales by 13%. Assuming theseestimates are accurate, how much would the company's net operatingincome increase (decrease) if the proposal is implemented?2-b. Would you recommend the increased advertising?