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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 Variable expenses $ 2,110, eee 915,180 Contribution margin Fixed expenses 1,194,820 1,327,eee Operating loss $ (132,180) 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 $ 611, een 60% $ 320,000 Central $ 810, eee 32% $ 531, eee North $ 689,000 42% $ 311,000 Required: 1. Prepare a contribution format Income statement segmented by geographic market, as requested by the president. Geographic Market Central Total Company South North S 0 0 0 s 0 S ols ols 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 $36,000. Calculate the incremental net operating Income. Incremental net operating income 2-b. Would you recommend the increased advertising? O No O Yes