Bovine Company, a wholesale distributor of DVDs, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement below 1,554,000 Sales 618,000 Variable expenses 936,000 Contribution margin 1,030,00O Fixed expenses (94,000) Net operating loss$ In an effort to isolate the problem, the president has asked for an income statement segmented by geographic market. Accordingly, the Accounting Department has developed the following data Geographic Market Central $384,000 $620,000 $550,000 South North Sales Variable expenses as a percentage of sales 50% 35% 38% Traceable fixed expenses $285,000 $329,000 $202,000 Required 1. Prepare a contribution format income statement segmented by geographic market, as desired by the president. (Input all amounts as positive values except losses which should be indicated by a minus sign.) Geographic Market Total Company South Central North Click to select) Click to select) (Click to select) Click to select) (Click to select) Click to select) Click to select) 2a. The company's sales manager believes that sales in the Central geographic market could be increased by 14% if monthly advertising were increased by $25,000. Calculate the incremental net operating income Incremental net operating income 2b.Would you recommend the increased advertising? Yes No