Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and...
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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 West $ 312,000 98,000 Sales Region Central $ 797,000 East $ 702,000 243,000 312,000 106,000 241,000 240,000 56,000 55,000 111,000 Utilities Depreciation 8,900 16,200 13,800 21,000 31,000 28,000 Shipping expense Total regional expenses Regional income (loss) before corporate expenses Corporate expenses: Advertising (general) 12,000 33,000 43,000 301,900 619,200 747,800 10,100 177,800 (45,800) 13,000 43,000 33,000 General administrative expense 22,000 22,000 22,000 Total corporate expenses 35,000 65,000 55,000 Net operating income (loss) $ (24,900) $ 112,800 $ (100,800) 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.) Variable expenses: Total Company Amount West Central East % Amount % Amount % Amount % Total variable expenses 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Traceable fixed expenses: Total traceable fixed expenses 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 $ 0 0.0 Common fixed expenses: Total common fixed expense 0 0.0 Net operating income (loss) $ 0 0.0 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 West $ 312,000 98,000 Sales Region Central $ 797,000 East $ 702,000 243,000 312,000 106,000 241,000 240,000 56,000 55,000 111,000 Utilities Depreciation 8,900 16,200 13,800 21,000 31,000 28,000 Shipping expense Total regional expenses Regional income (loss) before corporate expenses Corporate expenses: Advertising (general) 12,000 33,000 43,000 301,900 619,200 747,800 10,100 177,800 (45,800) 13,000 43,000 33,000 General administrative expense 22,000 22,000 22,000 Total corporate expenses 35,000 65,000 55,000 Net operating income (loss) $ (24,900) $ 112,800 $ (100,800) 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.) Variable expenses: Total Company Amount West Central East % Amount % Amount % Amount % Total variable expenses 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Traceable fixed expenses: Total traceable fixed expenses 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 $ 0 0.0 Common fixed expenses: Total common fixed expense 0 0.0 Net operating income (loss) $ 0 0.0
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