illard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them the West, Central, and East regions. Each of these regions is about the same size and each has its own manager and sales staff. he company has been experiencing losses for many months. In an effort to improve performance, management has requested that e monthly income statement be segmented by sales region. The company's first effort at preparing a segmented income statement r 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 Sales Variable expenses: Cost of goods sold Shipping expense Total variable expenses Contribution margin ✓ ✓ Total Company Amount $ 2,000,000 X 819,400 X 77,600 x Total corporate expenses Net operating income (loss) he cost of goods sold and shipping expense are both variable. All other costs are fixed. equired: Prepare a new contribution format segmented income statement for May. (Round percentage answers to 1 decimal place.) 897,000 ✓ 1,103,000 % 100.0 41.0 3.9 West $ 312,000 44.9 55.1 98,000 106,000 54,000 9,300 20,000 17,000 304,300 7,700 16,000 19,000 35,000 $ (27,300) West Amount $ 450,000 Sales Region Central $799,000 162,900 X 17,100 € 180,000 270,000 242,000 235,000 54,000 16,200 30,000 34,000 611,200 187,800 Answer is complete but not entirely correct. Central 41,000 35,000 19,000 19,000 60,000 54,000 $ 127,800 $ (97,800) % 100.0 36.2 3.8 40.0 60.0 East $ 699,000 Amount 314,000 237,000 109,000 13,800 29,000 40,000 742,800 (43,800) 800,000 312,000 488,000 280,000 X 32,000 % 100.0 35.0 4.0 Amount 750,000 East 376,500 X 28,500 405,000 39.0 61.0 345,000 % 100.0 50.2 x 3.8 x 54.0 46.0
illard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them the West, Central, and East regions. Each of these regions is about the same size and each has its own manager and sales staff. he company has been experiencing losses for many months. In an effort to improve performance, management has requested that e monthly income statement be segmented by sales region. The company's first effort at preparing a segmented income statement r 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 Sales Variable expenses: Cost of goods sold Shipping expense Total variable expenses Contribution margin ✓ ✓ Total Company Amount $ 2,000,000 X 819,400 X 77,600 x Total corporate expenses Net operating income (loss) he cost of goods sold and shipping expense are both variable. All other costs are fixed. equired: Prepare a new contribution format segmented income statement for May. (Round percentage answers to 1 decimal place.) 897,000 ✓ 1,103,000 % 100.0 41.0 3.9 West $ 312,000 44.9 55.1 98,000 106,000 54,000 9,300 20,000 17,000 304,300 7,700 16,000 19,000 35,000 $ (27,300) West Amount $ 450,000 Sales Region Central $799,000 162,900 X 17,100 € 180,000 270,000 242,000 235,000 54,000 16,200 30,000 34,000 611,200 187,800 Answer is complete but not entirely correct. Central 41,000 35,000 19,000 19,000 60,000 54,000 $ 127,800 $ (97,800) % 100.0 36.2 3.8 40.0 60.0 East $ 699,000 Amount 314,000 237,000 109,000 13,800 29,000 40,000 742,800 (43,800) 800,000 312,000 488,000 280,000 X 32,000 % 100.0 35.0 4.0 Amount 750,000 East 376,500 X 28,500 405,000 39.0 61.0 345,000 % 100.0 50.2 x 3.8 x 54.0 46.0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject :- Accounting
Transcribed Image Text: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
Variable expenses:
Cost of goods sold
Shipping expense
Total variable expenses
Contribution margin
Traceable fixed expenses.
Total Company
Amount
$ 2,000,000 X
819,400 X
77,600 X
897,000
1,103,000
%
100.0
West
$ 312,000
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.)
41.0 X
3.9 x
44.9
55.1
98,000
106,000
54,000
9,300
20,000
17,000
304,300
7,700
16,000
19,000
35,000
$ (27,300)
West
Amount
$
450,000
Sales Region
Central
$ 799,000
162,900
17,100 x
180,000
270,000
242,000
235,000
54,000
16,200
30,000
34,000
611, 200
187,800
41,000
19,000
60,000
$ 127,800
Answer is complete but not entirely correct.
%
100.0
36.2
3.8 x
40.0
60.0
Amount
$
East
$ 699,000
800,000
314,000
237,000
109,000
13,800
29,000
40,000
742,800
(43,800)
35,000
19,000
54,000
$ (97,800)
Central
312,000
488,000
280,000
32,000 X
%
100.0
35.0
4.0 X
39.0
61.0
< Prev
Amount
$
750,000
405,000
345,000
East
376,500
28,500 X
1 of 3
×
‒‒‒
iii
%
100.0
50.2
3.8 x
54.0
46.0
Next >
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