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 West $312.000 Sales Region Central East 5 706,000 $698,000 Sales Regional expenses (traceable) Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense Total regional expenses Regional income (less) before corporate expenses Corporate expenses Advertising (general) General administrative expense Total corporate expenses Net operating income (loss) 97,000 100,000 56,000 9,300 25,000 16,000 303,300 8.700 238,000 241,000 57,000 15,700 31,000 26.000 608, 700 187,300 312,000 242,000 106,000 14,100 28,000 43,000 745, 100 47.100) 15,000 20,000 35,000 $ (26,300) 40,000 20.ece 50.000 $ 127,300 37,000 20,000 57,000 $ (104,100) The cost of goods sold and shipping expense are both variable. All other costs are fixed. 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.) West Central Total Company Amount % East Amount Amount % Amount % % Variable expenses Total variable expenses Traceable fixed expenses Traceable fixed expenses Total traceable fixed expenses Common fixed expenses Total common fixed expense Net operating income (loss) 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 West $312.000 Sales Region Central East 5 706,000 $698,000 Sales Regional expenses (traceable) Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense Total regional expenses Regional income (less) before corporate expenses Corporate expenses Advertising (general) General administrative expense Total corporate expenses Net operating income (loss) 97,000 100,000 56,000 9,300 25,000 16,000 303,300 8.700 238,000 241,000 57,000 15,700 31,000 26.000 608, 700 187,300 312,000 242,000 106,000 14,100 28,000 43,000 745, 100 47.100) 15,000 20,000 35,000 $ (26,300) 40,000 20.ece 50.000 $ 127,300 37,000 20,000 57,000 $ (104,100) The cost of goods sold and shipping expense are both variable. All other costs are fixed. 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.) West Central Total Company Amount % East Amount Amount % Amount % % Variable expenses Total variable expenses Traceable fixed expenses Traceable fixed expenses Total traceable fixed expenses Common fixed expenses Total common fixed expense Net operating income (loss)
