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:

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:

Required:

Prepare a contribution format Income statement segmented by geographic market, as requested by the president.

$2-$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 $$42,000.$ Calculate the incremental net operating income.

$2-$b$.$ Would you recommend the increased advertising?