Do not give image format Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time, as shown by its most recentmonthly 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 by geographic market. Accordingly,the Accounting Department has developed the following:Sales.Variable expenses as a percentage of sales.Traceable fixed expensesGeographic MarketSouth CentralNorth$616,000 $815,000 $729,000$336,000 $546,00055%TotalCompany$30%Required:1. Prepare a contribution format income statement segmented by geographic market, as requested by the president.0South40%$316,000Geographic Market0Central0North0 Required:1. Prepare a contribution format income statement segmented by geographic market, as requested by the president.4TotalCompanyIncremental net operating income$$$000$SouthGeographic Market00 $Central00SNorth002-a. The company's sales manager believes that sales in the Central geographic market could be increased by 10% if monthlyadvertising is increased by $41,000. Calculate the incremental net operating income.

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: Sales Variable expenses as a percentage of sales Traceable fixed expenses Geographic Market South Central North $616,000 $815,000 $729,000 $336,000 $546,000 55% Total 30% 40% $316,000 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. Geographic Market

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: Sales Variable expenses as a percentage of sales Traceable fixed expenses Geographic Market South Central North $616,000 $815,000 $729,000 $336,000 $546,000 55% Total 30% 40% $316,000 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. Geographic Market

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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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: 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: Required: 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 $42, 000. Calculate the incremental net operating income. 2- b. Would you recommend the increased advertising?
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