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 52,160,000 Variable expenses 8?4,900 Contribution margin 1,285,100 Fixed expenses 1,337,000 Operating loss 5 (51,900) 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 Central North Sales $616,000 $815,000 $729,000 Variable expenses as a percentage of sales 55% 30% 40% Traceable fixed expenses $336,000 $546,000 $316,000 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. Geographic Market Total Company South Central North Sales $ 2,160,000 $ 616,000 $ 815,000 $ 729,000 Variable expenses 874,900 338,800 244,500 291,600 Contribution margin $ 1,285, 100 277,200 570,500 437,400 Traceable fixed expenses 1, 198,000 336,000 546,000 316,000 Geographic market segment margin $ 87,100 $ (58,800) $ 24,500 $ 121,400 Common fixed expenses not traceable to geographic markets 139,000 Operating income $ (51,900) 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 $41,000. Calculate the incremental net operating income. Incremental net operating income $ 16,050