Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what goes in place of 4.2 2m 6-26 (Algo) Restructuring a Segmented Income Statement (L06-4) Corporation is a wholesale distributor of office products. It purchases

what goes in place of 4.2
image text in transcribed
image text in transcribed
2m 6-26 (Algo) Restructuring a Segmented Income Statement (L06-4) Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them lest, Central and East regions. Each of these regions is about the same size and each has its own manager and sales staff. npany has been experiencing losses for many months. In an effort to improve performance, management has requested that ithly income statement be segmented by sales region. The company's first effort at preparing a segmented income statement is given below Sales Region West Central East $ 313,000 $ 884, eee $ 703,000 nal expenses (traceable) t of goods sold 95,000 243,000 311,000 ertising 102,000 244,000 238, eee 54,000 51,000 108,000 lities 9,000 16,000 13,900 reciation 22,000 33,000 28,000 oping expense 14,000 27,000 41,000 regional expenses 296,000 614,000 239,900 val income (loss) before corporate expenses 17 , . 190.000 (36,900) rate expenses: ertising (general) 17.00 eral administrative expense 42,000 37,000 18,000 18,000 18,000 corporate expenses 35,000 60,000 55,000 berating income (loss) $ (18,080) (130,000) $(91,908) aries it of goods sold and shipping expense are both variable. All other costs are fixed. .d: are a new contribution format segmented Income statement for May. (Round percentage answers to 1 decimal place.) West East Total Company Amount % % Central Amount $ 804,000 Amount $ Amount $ 1,820,000 100.0 > 313,000 100.0 100.0 703,000 100.0 expenses of goods sold ng expense 442 649,000 82,000 35.7 45 95,000 14,000 30.3243,000 45 27.000 30.2311,000 3.4 41,000 5.8 40.2 34.8 33.6 50.0 731,000 1,089,000 109,000 204.000 270,000 534,000 352,000 351,000 > 59.8 65.2 66.4 50.0 riable expenses ition margin le fixed expenses (tising ies 8 33.8 15.4 584,000 213,000 38.900 83,000 solo 32.1102,000 11.7 54,000 2.1 9,000 4.6 22.000 326 244.000 173 51,000 2.9 16,000 70 33,000 30.3 238,000 6.3 108,000 13,900 4.1 28,000 ANG 8 OG 000 25 2.0 2.0 oo sciation 4.0 ceable fixed expenses 50.5 59.8 42.7 387.900 55.2 918.900 170,100 187,000 $ 17,000 il segment margin 344,000 S 190.000 9.3 5.4 23.7 (5.2) (36.900) n foxed expenses rtising (general) ral administration 96,000 54,000 42% 30 + mmon foxed expense rating income (loss) 150,000 20,100 72 2.1 5

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

Fundamental Financial Accounting Concepts

Authors: Thomas Edmonds, Christopher Edmonds

9th edition

9781259296802, 9781259296758, 78025907, 1259296806, 9781259296765, 978-0078025907

Students also viewed these Accounting questions

Question

Where do the authors work?

Answered: 1 week ago