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please help Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time, as shown by its most recent monthly contribution format

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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 $2,000,000 792, eee Sales Variable expenses Contribution margin Fixed expenses Operating loss 1,288,000 1,305,000 $ (97,000) 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 $600,000 523 $320,000 Central $800,000 sex $530, see North $600,000 404 $300,000 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president Geographic Market Total Company South Central North $ 0 0 0 0 Sales + Variable expenses Contribution margin Traceable fixed expenses Geographic market segment margin Common fixed expenses not traceable to geographic markets Operating incomo $ 0 $ Os 0 $ 0 $ 0 2-a. The company's sales manager believes that sales in the Central geographic market could be increased by 15% of monthly advertising is increased by $25,000. Calculate the incremental net operating income. Incremental net operating income 2-b. Would you recommend the increased advertising Yes No

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