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Please help solve this and show me how you got your calculations. Thank you. Losses have been incurred at Millard Corporation for some time. In
Please help solve this and show me how you got your calculations. Thank you.
Losses have been incurred at Millard Corporation for some time. In an effort to isolate the problem and improve the company's performance, management has requested that the monthly income statement be segmented by sales region. he Company's first effort at preparing a segmented statement is given below This statement is for May, the most recent month of activity East Sales Region Central 314,000 799,000 698,000 Sales Regional expenses (traceable) 93.000 236,000 Cost of goods sold 311.000 244,000 244,000 Advertising 109.000 54,000 Salaries 56,000 110.000 Utilities 9.100 16,200 14,000 32,000 Depreciation 23.000 25.000 32,000 Shipping expense 13,000 41.000 616,200 Total regional expenses 301.100 745,000 Regional income (loss) before corporate expenses 12,900 182,800 (47,000) Corporate expenses. Advertising (general) 16,000 42,000 33.000 22,000 General administrative expense 22,000 22,000 38,000 64,000 Total corporate expenses 55.000 (25,100) 118,800 (102,000) Net operating income (loss) Cost of goods sold and shipping expense are both variable, other costs are all fixed. Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them in the three regions given above. The three regions are about the same size, and each has its own manager and sales staff. The products that the company distributes vary widely in profitability RequiredStep by Step Solution
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