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 $2,180,000 889,520 Contribution margin Fixed expenses 1,290,480 1,341,000 Operating loss $ (50,520) 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 North $745,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses South $618,000 518 $360,000 Central $817,000 320 $538,000 $318,000 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. Total Company Geographic Market Central South North Total Company Geographic Market Central South North $ 0 $ 0 $ 0 $ 5 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 $43,000. Calculate the incremental net operating income. Incremental net operating income 2-b. Would you recommend the increased advertising? No Yes