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 $2,030,000 822,250 1,207,750 1,311,000 $ (103,250) 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 South $603,000 55% Geographic Market Central North $802,000 $625,000 30% 40% $323,000 $533,000 $303,000 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 S 0 $ $ 0 2-a. The company's sales manager believes that sales in the Central geographic market could be increased by 12% If monthly advertising is increased by $28,000. Calculate the Incremental net operating Income. Incremental net operating income 2-b. Would you recommend the Increased advertising? Yes O NO