Problem 11-15 Restructuring a Segmented Income Statement [LO1] Brabant NV of the Netherlands is a wholesale distributor of Dutch cheeses that it sells throughout the European Union. Unfortunately, the company's profits have been declining, which has caused considerable concern. To help understand the condition of the company, the managing director of the company has requested that the monthly income statement be segmented by sales territory. Accordingly, the company's accounting department has prepared the following statement for March, the more recent month. (The Dutch currency is the euro, which is designated by . 20 points Sales Territory Southern Europe 300,000 Middle Europe 800,000 Northern Europe 700,000 Sales Territorial expenses (traceable): Cost of goods sold Salaries Insurance Advertising Depreciation Shipping 93,000 54,000 9,000 105,000 21,000 15,000 240,000 56,000 16,000 240,000 32,000 32,000 315,000 112,000 14,000 245,000 28,000 42,000 Total territorial expenses 297,000 616,000 756,000 Territorial income (loss) before corporate expenses 3,000 184,000 (56,000) Corporate expenses : Advertising (general) Selling and administrative 15,000 20,000 40,000 20,000 35,000 20,000 Total corporate expenses 35,000 60,000 55,000 Operating income (loss) (32,000) 124,000 (111,000) Cost of goods sold and shipping expenses are both variable; other costs are all fixed. Brabant NV purchases cheeses at auction and from farmers' cooperatives, and it distributes them in the three territories shown in the statement above. Each of the three sales territories has its own manager and sales staff. The cheeses vary widely in profitability; some have a high margin and some have a low margin. (Certain cheeses, after having been aged for long periods, are the most expensive and carry the highest margins.) 3. Prepare a new segmented contribution format income statement for May. Show a Total column as well as data for each territory Include percentages on your statement for all columns. (Round your percentage answers to 1 decimal place.) Total Amount in s Southern Europe Amount in s % Middle Europe Amount in s % Northern Europe Amount in s % % Variable expenses: Total variable expenses Traceable fixed expenses: Total traceable fixed expenses Common fixed expenses: Total common fixed expense