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3. Prepare a new contribution format segmented income statement for May. (Round percentage answ to 1 decimal place.)

3. Prepare a new contribution format segmented income statement for May. (Round percentage answ to 1 decimal place.)

FINANCIAL ACCOUNTING
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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Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them in the West, Central, and East regions. Each of these regions is abo the same size and each has its own manager and sales staff. The company has been experiencing losses for many months. In an effort to improve performance, management has requested that the monthly income statement be segmented by sales region. The company's first effort at preparing a segmented income statement for May is given below. Sales Region West $ 311,000 Sales Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation 99,000 103,000 56,000 8,600 19,000 Shipping expense Total regional expenses 303,600 Regional income (loss) before corporate expenses 7,400 Corporate expenses: Advertising (general) 18,000 12,000 Central $ 802,000 19,000 31,000 236,000 239,000 50,000 15,700 34,000 28,000 602,700 39,000 East $697,000 19,000 312,000 58,000 244,000 115,000 13,500 29,000 199,300 (55,500) 39,000 752,500 General administrative expense Total corporate expenses Net operating income (loss) $ (23,600) $ 141,300 $ (107,500) The cost of goods sold and shipping expense are both variable. All other costs are fixed. Required: 3. Prepare a new contribution format segmented income statement for May. (Round percentage answe to 1 decimal place.) 33,000 19,000 52,000
Transcribed Image Text:Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them in the West, Central, and East regions. Each of these regions is abo the same size and each has its own manager and sales staff. The company has been experiencing losses for many months. In an effort to improve performance, management has requested that the monthly income statement be segmented by sales region. The company's first effort at preparing a segmented income statement for May is given below. Sales Region West $ 311,000 Sales Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation 99,000 103,000 56,000 8,600 19,000 Shipping expense Total regional expenses 303,600 Regional income (loss) before corporate expenses 7,400 Corporate expenses: Advertising (general) 18,000 12,000 Central $ 802,000 19,000 31,000 236,000 239,000 50,000 15,700 34,000 28,000 602,700 39,000 East $697,000 19,000 312,000 58,000 244,000 115,000 13,500 29,000 199,300 (55,500) 39,000 752,500 General administrative expense Total corporate expenses Net operating income (loss) $ (23,600) $ 141,300 $ (107,500) The cost of goods sold and shipping expense are both variable. All other costs are fixed. Required: 3. Prepare a new contribution format segmented income statement for May. (Round percentage answe to 1 decimal place.) 33,000 19,000 52,000
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