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 $2,070,000 895,880 Contribution margin Fixed expenses Operating loss 1,174,120 1,319,000 $ 144,830) 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 percentage of sales Traceable fixed expenses Geographic Market South Central Marth $627,000 5305,000 $ 65,000 sex 40% 5370,000 $ 480,000 $207.000 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. Geographic Market Total Company South Central North 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 $32,000. Calculate the incremental net operating income Incremental net operating income 2-b. Would you recommend the increased advertising? O Yes No