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 $2,090,000 873,540 1,216,460 1,323,000 $ (106,540) 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 Required: Geographic Market South $609,000 Central $808,000 North $673,000 57% 31% 41% $329,000 $539,000 $309,000 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 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. Geographic Market Total Company South Central North S 0 0 0 0 $ 0 S 0 $ 0 $ 0 $ 0 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 $34,000. Calculate the incremental net operating income. Incremental net operating income Company VUUSE CONTUSI RVICE $ 0 0 0 0 S 0 $ 0 S 0 $ 0 $ 0 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 $34,000. Calculate the incremental net operating income. Incremental net operating income 2-b. Would you recommend the increased advertising? O Yes No