Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses $2,050,000 876,050 Contribution margin Fixed expenses 1,173,950 1,315,000 Operating loss $ (141,050) 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: Geographic Market South $605,000 Central $804,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses 53% North $ 641,000 44% $305,000 34% $ 315,000 $500,000 required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. Total Company Geographic Market Central South North S 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 2-a. The company's sales manager believes that sales in the Central geographic market could be increased by 10% if monthly advertising is increased by $30,000. Calculate the incremental net operating income. Incremental net operating income .b. Would you recommend the increased advertising? Yes