Hi there,

Could someone please help me solve the following;

Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time. as shown by its most recent monthly contribution format in come statement: Sales $ 2.1?0,000 Variable 350.440 expenses Contribution 11309550 margin Fined expenses 1,339,000 Operating ioss $ [29,HO} 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 $ 611000 $ 316,000 $ T311000 Variable expenses as a 52% 30% 40% percentage of sales Traceable xed expenses $359,000 $54?,000 $ 31?,000 Wired: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. as mono s mac- :5 meme $ mono ___ ___ " ___ ___ 2-3. The company's sales manager believes that sales in the Central geographic market could be increased by 15% if monthly advertising is increased by $2,000. Calculate the incremental net operating income. 2-b. Would you recommend the increased advertising? 0N0 OYes