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What is the process and how I can solve this question please! Bovine Company, a wholesale distributor of DVD's, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement below: Sales.......$1,500,000 Variable expenses XXXXXXXXXX,000 Contribution margin XXXXXXXXXX,000 Fixed Expenses XXXXXXXXXX,000 Net Operating Loss......$ (33,000) In an effort to isolate the problem, the president has asked for an income statement segmented by geographical market. Accordingly, the Accounting Department has developed the following data: Geographic Market South XXXXXXXXXXCentral XXXXXXXXXXNorth Sales.....................................$400,000.........$600,000..........$500,000 Vairiable expenses as a percentage of sales................ XXXXXXXXXX52% XXXXXXXXXX% XXXXXXXXXX% Traceable fixed expenses.......$240,000............$330, XXXXXXXXXX,000 2) How do we calculate the solution? also if the company sales manager believes that sale in the Central geog market could increase 15% if monthly advertising were increased by $25,000. Would you recommend the increase advertisement? Show the computation
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