Required: 3. Prepare a new contribution format segmented income statement for May. (Round percentage answers to 1 decimal place.)
Required: 3. Prepare a new contribution format segmented income statement for May. (Round percentage answers to 1 decimal place.)
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 4EA: The following information is from Daves Sporting Goods. Daves is a Midwest sporting goods store with...
Related questions
Question
as
![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
West
$ 313,000
97,000
Sales Region
Central
$ 801,000
East
$ 705,000
242,000
315,000
102,000
237,000
241,000
52,000
57,000
109,000
Utilities
9,300
16,500
14,000
Depreciation
21,000
32,000
27,000
Shipping expense
13,000
33,000
42,000
Total regional expenses
294,300
617,500
748,000
Regional income (loss) before corporate expenses
18,700
183,500
(43,000)
Corporate expenses:
Advertising (general)
16,000
43,000
33,000
General administrative expense
20,000
20,000
20,000
Total corporate expenses
36,000
63,000
53,000
Net operating income (loss)
$ (17,300)
$ 120,500
$ (96,000)
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.)
Variable expenses:
Total variable expenses
Traceable fixed expenses:
Total traceable fixed expenses
Common fixed expenses:
Total common fixed expense
Net operating income (loss)
Total Company
Amount
West
Central
East
%
Amount
%
Amount
%
Amount
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0e2e66cd-e168-4bb8-a387-ccd2f8462154%2F9eb9266c-45ad-43fd-b572-91e985f438d0%2Fz1grukv_processed.png&w=3840&q=75)
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
West
$ 313,000
97,000
Sales Region
Central
$ 801,000
East
$ 705,000
242,000
315,000
102,000
237,000
241,000
52,000
57,000
109,000
Utilities
9,300
16,500
14,000
Depreciation
21,000
32,000
27,000
Shipping expense
13,000
33,000
42,000
Total regional expenses
294,300
617,500
748,000
Regional income (loss) before corporate expenses
18,700
183,500
(43,000)
Corporate expenses:
Advertising (general)
16,000
43,000
33,000
General administrative expense
20,000
20,000
20,000
Total corporate expenses
36,000
63,000
53,000
Net operating income (loss)
$ (17,300)
$ 120,500
$ (96,000)
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.)
Variable expenses:
Total variable expenses
Traceable fixed expenses:
Total traceable fixed expenses
Common fixed expenses:
Total common fixed expense
Net operating income (loss)
Total Company
Amount
West
Central
East
%
Amount
%
Amount
%
Amount
%
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning