Drenthe BV of the Netherlands is a wholesale distributor of Dutch cheeses that it sells throughout the European Community. Unfortunately, the companys profits have been declining, which has caused considerable concern. To help understand the condition of the company, the managing director of the company has requested that the monthly income statement be segmented by sales territory. Accordingly, the companys accounting department has prepared the following statement for March, the most recent month. (The Dutch currency is the euro which is designated by .)

	Sales Territory
	Southern Europe		Middle Europe		Northern Europe
Sales		311,000		804,000		698,000
Territorial expenses (traceable):
Cost of goods sold		98,000		240,000		311,000
Salaries		55,000		52,000		105,000
Insurance		8,700		16,000		13,500
Advertising		105,000		241,000		242,000
Depreciation		19,000		32,000		29,000
Shipping		13,000		34,000		39,000
Total territorial expenses		298,700		615,000		739,500
Territorial income (loss) before corporate expenses		12,300		189,000		(41,500)
Corporate expenses:
Advertising (general)		18,000		38,000		38,000
General administrative		20,000		20,000		20,000
Total corporate expenses		38,000		58,000		58,000
Net operating income (loss)		(25,700)		131,000		(99,500)

Cost of goods sold and shipping expenses are both variable; other costs are all fixed. Drenthe BV purchases cheeses at auction and from farmers cooperatives, and it distributes them in the three territories listed above. Each of the three sales territories has its own manager and sales staff. The cheeses vary widely in profitability; some have a high margin and some have a low margin. (Certain cheeses, after having been aged for long periods, are the most expensive and carry the highest margins.)

Required:

3.

Prepare a new segmented contribution format income statement for May. Show a Total column as well as data for each territory. In addition, for the company as a whole and for each sales territory, show each item on the segmented income statement as a percent of sales. (Note: % columns may not total due to rounding.) (Input all amounts as positive values except losses and their percentages which should be indicated by a minus sign. Round your percentage answers to 1 decimal place.)

	Total		Southern Europe		Middle Europe		Northern Europe
	Amount in s	%	Amount in s	%	Amount in s	%	Amount in s	%
(Click to select)Shipping expenseGeneral administrationCost of goods soldAdvertising (general)SalariesNet operating income (loss)Contribution marginSales
Variable expenses:
(Click to select)SalariesSalesInsuranceContribution marginCost of goods soldAdvertising (general)Net operating income (loss)General administration
(Click to select)General administrationSalariesInsuranceAdvertising (general)SalesNet operating income (loss)Contribution marginShipping expense
Total variable expenses
(Click to select)Contribution marginGross margin
Traceable fixed expenses:
(Click to select)Cost of goods soldShipping expenseContribution marginSalariesSalesNet operating income (loss)General administrationTerritorial segment margin
(Click to select)General administrationInsuranceTerritorial segment marginShipping expenseContribution marginSalesCost of goods soldNet operating income (loss)
(Click to select)AdvertisingCost of goods soldShipping expenseTerritorial segment marginSalesContribution marginGeneral administrationNet operating income (loss)
(Click to select)Shipping expenseContribution marginDepreciationGeneral administrationCost of goods soldSalesNet operating income (loss)Territorial segment margin
Total traceable fixed expenses
(Click to select)SalesCost of goods soldTerritorial segment marginShipping expenseNet operating income (loss)Contribution marginSalariesGeneral administration
Common fixed expenses:
(Click to select)Advertising (general)Contribution marginInsuranceShipping expenseSalariesNet operating income (loss)Cost of goods soldSales
(Click to select)SalesNet operating income (loss)Contribution marginShipping expenseInsuranceGeneral administrationCost of goods soldSalaries
Total common fixed expense
(Click to select)Net operating lossNet operating income