Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Please help me to correct this question, and please add something into it if I miss anything, because it said the answer is not completed.

image text in transcribed

Please help me to correct this question, and please add something into it if I miss anything, because it said the answer is not completed. Thanks.

Problem 6-26 (Algo) Restructuring a Segmented Income Statement [LO5-4 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 Region Test 3 310.000 Central 3 799,000 East 3 704.000 Sales Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense Total regional expenses Regional income (Loss) bezore corporate expenses Corporate expenses: Advertising (general) General administrative expense Total corporate expenses Net operating income (loss) 95.000 103.000 59.000 3.500 20.000 14.000 299, 500 10.500 233,000 242.000 55.000 15,700 31.000 31,000 612700 184. 200 320,000 245.000 110.000 14. 200 27,000 33,000 754. 200 (50,200) 17.000 20.000 27.000 $26.500 43,000 20.000 62.000 $ 122,200 37,000 20.000 57.000 3 (107.2007 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.) Answer is not complete. West Central East Total Company Amount % 100.0 1,813,000 Amount % Amount % % Amount IS 17.1 x 799,000 Sales 310,000 44.1 x 38.8% 704,000 Variable expenses Cost of goods sold Shipping expense SIEI 653,000 83.000 CC 100.0 100.0 95,000 14.000 14.6% 238.000 16.9 31.000 36.5X 320,000 37.4% 38.000 49.0 X 45.8 X Total variable expenses 269,000 73.9 738.000 1,077,000 2000 (100.0) 109,000 201.000 31.5 (14.4) 358.000 348,000 94.8 (58.0) 530.000 (29.8) Traceable fixed expenses Advertising Salaries Utilities Depreciation SOCO 590,000 224,000 38.400 78,000 100.0 103.000 100.0% 59,000 100.0 8,500 100.0 20.000 17.5x242.000 26.3% 55,000 22.1 x 15,700 25.6% 31,000 41.0 245.000 24.6 X 110,000 40.9 14,200 39.7 27,000 SIIS 41.5 X 49.1 x 37.0 X 34.6% Total traceable fixed expenses 930,400 4000 190.500 91.5 146.2 162.2 343.700 $ 189.300 395,200 $ (50.200) 146,600 (5000) $ 10,500 (105.8) (176.0) (218.2) Common fixed expenses 97,000 Advertising (general) General administration Total common fixed expense 60.000 157.000 0.0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Analytics

Authors: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann

5th Edition

0357902211, 978-0357902219

Students also viewed these Accounting questions