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) 1. Prepare a contribution format income statement segmented by geographic market, as requested by thepresident.Incremental net operating incomeTotalCompany2-b. Would you recommend the increased advertising?NoYesSouthGeographic Market2-a. The company's sales manager believes that sales in the Central geographic market could beincreased by 10% if monthly advertising is increased by $41,000. Calculate the incremental netoperating income.CentralNorth Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time, asshown by its most recent monthly contribution format income statement:SalesVariable expensesContribution marginFixed expensesOperating loss$2,160,000874,9001,285,1001,337,000$ (51,900)In an effort to isolate the problem, the president has asked for an income statement segmented bygeographic market. Accordingly, the Accounting Department has developed the following:Geographic MarketSalesVariable expenses as a percentage of salesTraceable fixed expensesSouth$616,000$336,00055%Central$815,000$546,00030%North$729,000$316,00040%

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%

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%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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