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Bovine Compary, a wholesale distributor of umbrellas, has been experiencing losses for some time, as...

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Accounting

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Bovine Compary, a wholesale distributor of umbrellas, has been experiencing losses for some time, as shown by its most fecent monthly contribution format income statement: In an effort to isolate the problem, the president has asked for an income statement segmented by geographic market. Accordingly. the Accounting Depsrtment has developed the following: Aequired: 1. Prepare o contribution format income stotement segmented by geogrophic 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 $27,000. Calculate the incremental net operating income. 2.b. Would you recommend the increased odvertising? Yes No

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