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 1,678,000 Sales 627,640 Variable expenses 1,050,360 Contribution margin 1,155,000 Fixed expenses (104,640) 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 $428,000 $680,000 $570,000 South North Sales Variable expenses as a percentage of sales 4 % 25% 48% Traceable fixed expenses $272,000 $338,000 $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 Sales 1678000 428000 Variable expenses 627640 184040 70000 510000 338000 Contribution margin 1050360 243960 Traceable fixed expenses 812000 272000 Geographic market segment margin 238360 Common fixed expenses not traceable to geographic markets 343000 Net operating loss 104640 Total Company $ 1678000 South $428000 Central North $680000 627640 184040 70000 273600 1050360 243960 510000 296400 202000 812000 272000 338000 238360 343000 104640 2a. The company's sales manager believes that sales in the Central geographic market could be increased by 17% if monthly advertising were increased by $24,000 Calculate the incremental net operating income Incremental net operating income 2b. Would you recommend the increased advertising? O No O Yes