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 Contribution margin Fixed expenses Operating loss $2,11e,se 915, 180 1,194,820 1,327,00 $ (132,180) 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: Sales Variable expenses as a percentage of sales Traceable fixed expenses Geographic Market South Central North $611, eee $810,000 $689, eee 60% 32% 42% $320, eee $531,00 $311, ces Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. Geographic Market Central Total Company South North 2-a. The company's sales manager believes that sales in the Central geographic market could be increased by 15% if monthly advertising is increased by $36,000. Calculate the incremental net operating income. Incremental net operating income 2-b. Would you recommend the increased advertising? O Yes O NO