Managerial accounting

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 rst effort at preparing a segmented income statement for May is given below. Sales Region West Central East Sales 5 313,000 $ 796,000 $ 700,000 Regional expenses (traceable): Cost of goods sold 95,000 241,000 315,000 Advertising 109,000 241,000 237,000 Salaries 59,000 53,000 105,000 Utilities 9,000 16,200 14,000 Depreciation 21,000 30,000 26,000 Shipping expense 13,000 29,000 42,000 Total regional expenses 306,000 610,200 739,000 Regional income (loss) before corporate expenses 7,000 185,800 (39,000) Corporate expenses: Advertising (general) 17,000 43,000 33,000 General administrative expense 21,000 21 ,000 21 ,000 Total corporate expenses 38,000 64,000 54,000 Net operating income (loss) 5 (31,000) $ 121,800 $ (93,000) l 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.) Total Company West Central East Amount % Amount % Amount % Amount % Variable expenses: Total variable expenses Traceable fixed expenses: Total traceable fixed expenses Common fixed expenses: Total common fixed expense Net operating income (loss)