please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Sure, here's a transcription and explanation suitable for an educational website:---### Exercise: Contribution Format Income Statement by Geographic Market#### Part 1 - Income Statement Preparation1. **Prepare a contribution format income statement** segmented by geographic market, as requested by the president. **Table: Contribution Format Income Statement** - **Columns:** - Total Company - Geographic Market: South, Central, North - **Structure:** - Several rows for input but currently empty for variables like sales, variable expenses, contribution margin, fixed expenses, and net operating income.#### Part 2 - Incremental Analysis2-a. **Sales Increase Projection** - The company’s sales manager believes that sales in the Central geographic market could be increased by 10% if monthly advertising is increased by $41,000. - **Task:** Calculate the incremental net operating income. **Input Box:** [Incremental net operating income]2-b. **Advertising Recommendation** - **Question:** Would you recommend the increased advertising? - **Options:** - No - Yes---This exercise is intended to help students understand how to prepare segmented income statements and conduct incremental analysis for decision-making in business operations. **Bovine Company: Analyzing Financial Losses**Bovine Company, a wholesale distributor of umbrellas, has been encountering financial losses recently. Below is the contribution format income statement for the most recent month:- **Sales:** $2,160,000- **Variable Expenses:** $874,900- **Contribution Margin:** $1,285,100- **Fixed Expenses:** $1,337,000- **Operating Loss:** ($51,900)To identify the root cause of the losses, the president requested an income statement segmented by geographic market. The Accounting Department provided the following breakdown:**Geographic Market Segment Analysis:**- **South Market:** - *Sales:* $616,000 - *Variable Expenses as a Percentage of Sales:* 55% - *Traceable Fixed Expenses:* $336,000- **Central Market:** - *Sales:* $815,000 - *Variable Expenses as a Percentage of Sales:* 30% - *Traceable Fixed Expenses:* $546,000 - **North Market:** - *Sales:* $729,000 - *Variable Expenses as a Percentage of Sales:* 40% - *Traceable Fixed Expenses:* $316,000This segmented income statement helps pinpoint areas where Bovine Company may improve efficiency or reduce costs to address operational losses.

Income statement is a financial statement that shows profitability, total revenue and total expenses…

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 $2,160,000 874,900 1,285,100 1,337,000 $ (51,900) 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 $616,000 $336,000 55% Central $815,000 $546,000 30% North $729,000 $316,000 40%