Problem 7-26 Restructuring a Segmented Income Statement [LO7-4] Millard Corporation is a wholesale distributor of office...

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Problem 7-26 Restructuring a Segmented Income Statement [LO7-4] 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 Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense Total regional expenses Regional income (loss) before corporate expenses Corporate expenses: Advertising (general) General administrative expense Total corporate expenses Net operating income (loss) Sales Region West Central East $ 311,000 $ 804,000 $ 704,000 91,000 106,000 237,000 316,000 239,000 245,000 52,000 57,000 108,000 8,900 15,800 14,200 22,000 29,000 29,000 15,000 34,000 36,000 294,900 611,800 748,200 16,100 192,200 (44,200) 17,000 39,000 34,000 18,000 35,000 18,000 57,000 18,000 52,000 $ (18,900) $ 135,200 $ (96,200) 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.) Problem 7-26 Restructuring a Segmented Income Statement [LO7-4] 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 Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense Total regional expenses Regional income (loss) before corporate expenses Corporate expenses: Advertising (general) General administrative expense Total corporate expenses Net operating income (loss) Sales Region West Central East $ 311,000 $ 804,000 $ 704,000 91,000 106,000 237,000 316,000 239,000 245,000 52,000 57,000 108,000 8,900 15,800 14,200 22,000 29,000 29,000 15,000 34,000 36,000 294,900 611,800 748,200 16,100 192,200 (44,200) 17,000 39,000 34,000 18,000 35,000 18,000 57,000 18,000 52,000 $ (18,900) $ 135,200 $ (96,200) 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.)