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Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distribute: in the West, Central, and East regions. Each of these regions is about the same size and each has its own manager and sales st The company has been experiencing losses for many months. In an effort to improve performance, management has requested the monthly income statement be segmented by sales region. The company's first effort at preparing a segmented income stat for May is given below. Sales Regional expenses (traceable): West $ 313,000 Sales Region Central $ 797,000 East $ 696,000

Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distribute: in the West, Central, and East regions. Each of these regions is about the same size and each has its own manager and sales st The company has been experiencing losses for many months. In an effort to improve performance, management has requested the monthly income statement be segmented by sales region. The company's first effort at preparing a segmented income stat for May is given below. Sales Regional expenses (traceable): West $ 313,000 Sales Region Central $ 797,000 East $ 696,000

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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ces 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 about 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 Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense Total regional expenses Regional income (loss) before corporate expenses Corporate expenses: Advertising (general) General administrative expense Variable expenses: Total Company Amount West $ 313,000 % 98,000 104,000 53,000 8,900 19,000 13,000 295,900 17,100 Sales Region Central $ 797,000 West 244,000 237,000 53,000 16,000 34,000 27,000 14,000 40,000 19,000 19,000 33,000 59,000 $ (15,900) $ 127,000 Amount 611,000 186,000 Total corporate expenses Net operating income (loss) 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 answers to 1 decimal place.) East $ 696,000 % 311,000 245,000 110,000 13,700 29,000 37,000 745,700 (49,700) 35,000 19,000 54,000 $ (103,700) Central Amount % Amount East %
Transcribed Image Text:ces 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 about 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 Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense Total regional expenses Regional income (loss) before corporate expenses Corporate expenses: Advertising (general) General administrative expense Variable expenses: Total Company Amount West $ 313,000 % 98,000 104,000 53,000 8,900 19,000 13,000 295,900 17,100 Sales Region Central $ 797,000 West 244,000 237,000 53,000 16,000 34,000 27,000 14,000 40,000 19,000 19,000 33,000 59,000 $ (15,900) $ 127,000 Amount 611,000 186,000 Total corporate expenses Net operating income (loss) 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 answers to 1 decimal place.) East $ 696,000 % 311,000 245,000 110,000 13,700 29,000 37,000 745,700 (49,700) 35,000 19,000 54,000 $ (103,700) Central Amount % Amount East %
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