The companys sales manager believes that sales in the Centeal geographic market could be increased by 10% if monthly advertising is increased by $32,000. Caculate the incremental net operating income.

Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time, as shown by its most recer monthly contribution format income statement Sales Variable expenses Contribution margin Fixed expenses Operating loss $2,070,000 895,880 1,174,120 1,319,000 $(144,880) In an effort to isolate the problem, the president has asked for an income statement segmented by geographic market. According the Accounting Department has developed the following: Soles Variable expenses as a percentage of sales Traceable fixed expenses Geographic Market South Central North $607,000 5806,000 $657,000 Sex 36% 46% $320,000 $480,000 $307,000 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president Geographic Market Total Company South Central North