Saved Help Banner Company, a distributor of radioactive isotopes, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses $2,020,000 788,100 Contribution margin Fixed expenses 1,231,900 1,309,000 Operating loss $ (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 $801,000 30% $532,000 North $617,000 40% S302,000 Required: 1. Prepare a contribution format Income statement segmented by geographic market, as requested by the president Saved Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. Geographic Market Sales Total Company South Central North S 0 0 0 $ 0 S 0 $ 015 S 0 2-a. The company's sales manager believes that sales in the Central geographic market could be increased by 15% If monthly advertising is increased by $27000. Calculate the Incremental net operating income Incremental niet operating in cooie 2-b. Would you recommend the increased advertising? Yes