- Millard Corporation Is A Wholesale Distributor Of Office Products It Purchases Office Products From Manufacturers And D 1 (34.26 KiB) Viewed 10 times
- Millard Corporation Is A Wholesale Distributor Of Office Products It Purchases Office Products From Manufacturers And D 2 (44.68 KiB) Viewed 10 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 Total corporate expenses Net operating income (loss) Weat $ 311,000 100,000 106,000 58,000 9,200 21,000 15,000 309,200 1,900 Sales Region Central $801,000 238,000 241,000 59,000 15,900 28,000 31,000 612,900 188,100 14,000 21,000 35,000 $ (33,200) $ 124,100 43,000 21,000 64,000 East $ 699,000 313,000 241,000 109,000 13,900 28,000 37,000 741,900 (42,900) 30,000 21,000 59,000 $ (101,900) 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 S 0 0 0 0 0 To 0 % 0.0 0.0 0.0 0.0 $ 0.0 0.0 West Amount 0 0 0 0 % 0.0 0.0 0.0 0.0 $ Central Amount 0 0 0 0 0.0 0.0 0.0 0.0 $ Amount 10 0 East 0 0 % 0.0 0.0 0.0 0.0