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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: Salos Variable expenses $2,020,000 788,100 Contribution margin Fixed expenses Operating loss 1,231,900 1,309,000 $(77,100) 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 Sales Variable expenses as a percentage of sales Traceable fixed expenses South $602,000 50% $322,000 Central 5801.000 30% $532,000 North $617.000 40 $302.000 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president Total Company Geographic Market Central South North 2-0. The company's sales manager believes that sales in the Central geographic market could be increased by 15% If monthly advertising is increased by $27.000. Calculate the incremental net operating income, incremental net operating income 2-b. Would you recommend the increased advertising? Yes ONo