Answer:
Wingate Company
1. Contribution format income statement segmented by divisions:
                                                Company        East         Central         West
Sales                                    $ 1,500,000  $350,000  $620,000  $530,000
Variable expenses                   655,500     154,000      241,800    259,700
Contribution margin                 844,500  $196,000   $378,200  $270,300
Traceable fixed expenses        819,000    294,000    329,000     196,000
Non-traceable fixed expenses 110,000 
Net operating income (loss) $ (84,500)  $(98,000)    $49,200    $74,300
2. Decrease in net operating loss = $45,200
Explanation:
a) Data and Calculations:
Wingate's most recent monthly contribution format income statement: 
Sales                                    $ 1,500,000 
Variable expenses                   655,500 
Contribution margin                 844,500 
Fixed expenses                       929,000 
Net operating income (loss) $ (84,500)
Additional data:
Division                                       East        Central         West 
Sales                                   $ 350,000  $ 620,000   $ 530,000 
Variable expenses as
  a percentage of sales                44 %           39 %            49 % 
Traceable fixed expenses $ 294,000  $ 329,000   $ 196,000
Implementation of the proposal:
Sales for West = $604,200 ($530,000 * 1.14)
Traceable fixed expenses for West = $225,000 ($196,000 + 29,000)
Contribution format income statement segmented by divisions:
                                                Company        East         Central         West
Sales                                    $ 1,574,200  $350,000  $620,000  $604,200
Variable expenses                   655,500     154,000      241,800    259,700
Contribution margin                  918,700  $196,000   $378,200  $344,500
Traceable fixed expenses        848,000   294,000    329,000    225,000
Non-traceable fixed expenses 110,000 
Net operating income (loss) $ (39,300)  $(98,000)    $49,200   $119,500
Decrease in net operating loss = $45,200 ($84,500 - 39,300)