Question: could you please help me with these accounting problems Bovine Company, a wholesale distributor of umbrellas. has been experiencing losses for some time, as shown

could you please help me with these accounting problems

could you please help me with these accounting problems Bovine Company, awholesale distributor of umbrellas. has been experiencing losses for some time, as

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 $2,200,000 Variable expenses 872,500 Contribution margin 1,327,500 Fixed expenses 1,345,000 Operating loss $ (17,500) 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 South Central North Sales $620,000 $819,000 $761,000 Variable expenses as a percentage of sales 52% 30% 40% Traceable fixed expenses $360,000 $529,000 $320,000 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. 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 $45,000. Calculate the incremental net operating income. 2-b. Would you recommend the increased advertising? 0 Yes 0 No

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