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 $2,070,000 895,880 Contribution margin Fixed expenses 1,174,120 1,319,000 Operating loss $ (144,880) 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 Sales Variable expenses as a percentage of sales Traceable fixed expenses South $ 607,000 50% $320,000 Central $806,000 36% $ 480,000 North $ 657,000 46% $307,000 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. Geographic Market Total Company South Central North $ 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 $32,000. Calculate the incremental net operating income. Incremental net operating income 2-b. Would you recommend the increased advertising? No O Yes