Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ? Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mostrecent monthly contribution format income statement:SalesVariable expensesContribution marginFixed expensesNet operating income (loss)In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, theAccounting Department has developed the following information:SalesVariable expenses as a percentage of salesTraceable fixed expenses$ 1,581,000692,640888,360977,000$ (88,640)Req 1Req 2ADivisionEastCentral$401,000 $650,000$266,000 $324,000Req 2B54%Complete this question by entering your answers in the tabs below.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 $20,000 based on the belief that itwould increase that division's sales by 13%. Assuming these estimates 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?Prepare a contribution format income statement segmented by divisions.39%Total CompanyEastWest$530,000$201,00042%DivisionCentralWest

The contribution margin is calculated as difference between sales and variable costs. The net income…

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 Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,581,000 692,640 888,360 977,000 (88,640) Sales Variable expenses as a percentage of sales Traceable fixed expenses $ 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 Central East $401,000 $650,000 54% $266,000 $324,000 39% West $530,000 $201,000 42% 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 $20,000 based on the belief that it would increase that division's sales by 13%. 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?