The following is a financial information from MayPagAsaPa Company: Additional information:The company purchase office supplies from big manufacturers and distributes among different segments. Cost of goods sold and shipping expenses are both variable.1.Prepare a new contribution format segmented income statement.2.Analyze your requirement #1. What points that might help to improve the company’s performance would you bring to management’s attention?3.Compare your output with Requirement 1 with the information above. List the items you think that is an error/disadvantage/weakness of the given data. Sales RegionWestCentralEastSales$450,000 $800,000 $ 750,000Regional expenses (traceable):Cost of goods soldAdvertising...162,900280,000376,500108,000200,000210,000Salaries..90,00088,000135,000Utilities12,00015,00030,00013,500Depreciation..Shipping expense..27,00028,00017,10032,00028,500Total regional expenses..418,500640,000795,000Regional income (loss) before corporate expenses...31,500160,000(45,000)Corporate expenses:Advertising (general)..General administrative expense.18,00050,00032,00030,00050,00050,000Total corporate expenses68,00082,00080,000Net operating income (loss).$ (36,500) $ 78,000 $(125,000)

The contribution margin is computed by subtracting the variable cost from the sale revenue. The…

Sales Region West Central East Sales $450,000 $800,000 $ 750,000 Regional expenses (traceable): Cost of goods sold Advertising... 162,900 280,000 376,50 108,000 200,000 210,00 135,00 15,00 30,000 28,50 795,00 Salaries. 90,000 88,000 Utilities 13,500 12,000 Depreciation.. Shipping expense.. 28,000 32,000 27,000 17,100 418,500 Total regional expenses. 640,000 Regional income (loss) before corporate expenses ... 31,500 160,000 (45,00 Corporate expenses: Advertising (general).... General administrative expense. 18,000 50,000 32,000 30,00 50,00 50,000 Total corporate expenses 68,000 82,000 80,00 Net operating income (loss). $ (36,500) $ 78,000 $(125,00

Sales Region West Central East Sales $450,000 $800,000 $ 750,000 Regional expenses (traceable): Cost of goods sold Advertising... 162,900 280,000 376,50 108,000 200,000 210,00 135,00 15,00 30,000 28,50 795,00 Salaries. 90,000 88,000 Utilities 13,500 12,000 Depreciation.. Shipping expense.. 28,000 32,000 27,000 17,100 418,500 Total regional expenses. 640,000 Regional income (loss) before corporate expenses ... 31,500 160,000 (45,00 Corporate expenses: Advertising (general).... General administrative expense. 18,000 50,000 32,000 30,00 50,00 50,000 Total corporate expenses 68,000 82,000 80,00 Net operating income (loss). $ (36,500) $ 78,000 $(125,00

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter16: Multistate Corporate Taxation

Section: Chapter Questions

Problem 35P

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