- Millard Corporation Is A Wholesale Distributor Of Office Products It Purchases Office Products From Manufacturers And D 1 (41.62 KiB) Viewed 34 times
- Millard Corporation Is A Wholesale Distributor Of Office Products It Purchases Office Products From Manufacturers And D 2 (46.1 KiB) Viewed 34 times
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 West $ 311,000 92,000 109,000 54,000 9,300 22,000 17,000 303,300 7,700 14,000 19,000 33.000 $(25,300) Sales Region Central $ 802.000 237,000 241,000 52.000 16,100 31,000 25,000 602.100 199.900 43.000 19.000 62,000 $137.900 East $703,000 317,000 236,000 105,000 14,000 26,000 40,000 738,000 (35.000) 30,000 10,000 Total corporate expenses Net operating income (loss) The cost of goods sold and shipping expense are both variable. All other costs are fixed. 57.000 $(02.000)
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 0 0 0 0 0 D 0.0 0.0 0.0 0.0 S 0.0 0.0 West Amount 0 0 0 0 0.0 0.0 0.0 0.0 S Central Amount 0 0 0 0 % 0.0 0.0 East Amount 0.0 0.0 $ 0 0 0 0 0.0 0.0 0.0 00