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Sales Region West Central East Sales $450,000 $800,000 $ 750,000 Regional expenses (traceable): Cost of goods sold Advertising... 162,900 280,000 376,50 108,000 200,000 210,00 135,00 15,00 30,000 28,50 795,00 Salaries. 90,000 88,000 Utilities 13,500 12,000 Depreciation.. Shipping expense.. 28,000 32,000 27,000 17,100 418,500 Total regional expenses. 640,000 Regional income (loss) before corporate expenses ... 31,500 160,000 (45,00 Corporate expenses: Advertising (general).... General administrative expense. 18,000 50,000 32,000 30,00 50,00 50,000 Total corporate expenses 68,000 82,000 80,00 Net operating income (loss). $ (36,500) $ 78,000 $(125,00

Sales Region West Central East Sales $450,000 $800,000 $ 750,000 Regional expenses (traceable): Cost of goods sold Advertising... 162,900 280,000 376,50 108,000 200,000 210,00 135,00 15,00 30,000 28,50 795,00 Salaries. 90,000 88,000 Utilities 13,500 12,000 Depreciation.. Shipping expense.. 28,000 32,000 27,000 17,100 418,500 Total regional expenses. 640,000 Regional income (loss) before corporate expenses ... 31,500 160,000 (45,00 Corporate expenses: Advertising (general).... General administrative expense. 18,000 50,000 32,000 30,00 50,00 50,000 Total corporate expenses 68,000 82,000 80,00 Net operating income (loss). $ (36,500) $ 78,000 $(125,00

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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Question

The following is a financial information from MayPagAsaPa Company:

 

Additional information:
The company purchase office supplies from big manufacturers and 
distributes among different segments. Cost of goods sold and shipping expenses 
are both variable.

1.Prepare a new contribution format segmented income statement.

2.Analyze your requirement #1. What points that might help to improve the 
company’s performance would you bring to management’s attention?

3.Compare your output with Requirement 1 with the information above. List 
the items you think that is an error/disadvantage/weakness of the given 
data.

Sales Region West Central East Sales $450,000 $800,000 $ 750,000 Regional expenses (traceable): Cost of goods sold Advertising... 162,900 280,000 376,500 108,000 200,000 210,000 Salaries.. 90,000 88,000 135,000 Utilities 12,000 15,000 30,000 13,500 Depreciation.. Shipping expense.. 27,000 28,000 17,100 32,000 28,500 Total regional expenses.. 418,500 640,000 795,000 Regional income (loss) before corporate expenses... 31,500 160,000 (45,000) Corporate expenses: Advertising (general).. General administrative expense. 18,000 50,000 32,000 30,000 50,000 50,000 Total corporate expenses 68,000 82,000 80,000 Net operating income (loss). $ (36,500) $ 78,000 $(125,000)
Transcribed Image Text:Sales Region West Central East Sales $450,000 $800,000 $ 750,000 Regional expenses (traceable): Cost of goods sold Advertising... 162,900 280,000 376,500 108,000 200,000 210,000 Salaries.. 90,000 88,000 135,000 Utilities 12,000 15,000 30,000 13,500 Depreciation.. Shipping expense.. 27,000 28,000 17,100 32,000 28,500 Total regional expenses.. 418,500 640,000 795,000 Regional income (loss) before corporate expenses... 31,500 160,000 (45,000) Corporate expenses: Advertising (general).. General administrative expense. 18,000 50,000 32,000 30,000 50,000 50,000 Total corporate expenses 68,000 82,000 80,000 Net operating income (loss). $ (36,500) $ 78,000 $(125,000)
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