Question: ignore second photo, is the same as the third except i was unable to rotate or delete it Bovine Company, a wholesale distributor of umbrellas,



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 Contribution margin Fixed expenses Operating loss $1,000, eee 396,000 604.000 652,600 $ (48,000) 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 Sales Variable expenses as a percentage of sales Traceable fixed expenses Geographic Market South Central North $300,000 $400,eee 5300,eee 52% 30% ex $160,000 $265,000 $150,00 Sed Help Save & Exit Submit Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president Total Company Geographic Market Central South North 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 $13,000. Calculate the incremental net operating income Incremental niet operating income Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president Total Company Geographic Market Central South North 2-a. The company's sales manager believes that sales in the Central geographic market could be increased by 15% of monthly advertising is increased by $13,000. Calculate the incremental net operating income. Book Incremental net operating income rences 2-b. Would you recommend the increased advertising? Yes
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