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Managerial Accounting question Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time, as shown by its most recent monthly contribution

Managerial Accounting question

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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: Sales $2,090,000 Variable expenses 873,540 Contribution margin 1,216,460 Fixed expenses 1,323,000 Operating loss $ (106,540) 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 $609,000 $808,000 $ 673,000 Variable expenses as a percentage of sales 57% 31% 41% Traceable fixed expenses $329,000 $539,000 $309,000Required: 1. Prepare a contribution format income statement segmented by geographic market. as requested by the president. 2-3. The oompany's sales manager believes that sales in the Central geographic market could be increased by 15% if monthlyI advertising is increased by $34,000. Calculate the incremental net operating income.

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