Sales Variable expenses $ 2,010,000 796, 120 Contribution margin Fixed expenses 1,213,880 1,307,000 Operating loss $ (93,120) 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 $601,000 52% $321,000 Central $800,000 30% $531,000 North $609,000 40% $301,000 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president $ Sales Variable expenses Contribution margin Traceable fixed expenses Geographic market segment margin Common fixed expenses not traceable to geographic markets Operating loss Total Company $ 2,010,000 796,120 $ 1,213,880 1,153,000 | $ 60,880 Geographic Market South Central 601,000 $ 800,000 $ 312,520 240,000 288,480 560,000 321,000 531,000 (32,520) $ 29,000 $ North 609,000 243,600 365,400 301,000 64,400 $ $ 60,880 2-a. The company's sales manager believes that sales in the Central geographic market could be increased by 10% if monthly advertising is increased by $26,000. Calculate the incremental net operating income. Incremental net operating income 2-b. Would you recommend the increased advertising? Ol Yes O No