chapter 6 4

2. Problem 6-26 (Algo) Restructuring a Segmented Income Statement (LO6-4) 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 100 points Spoed PI References Sales Regional oxpenses traceabio) Cont of goods Hold Advertising Salarios Utilities Depreciation hipping expense Total regional expenses Regional income (los) before corporate expenses Corporate expenses Advertising (general) General administrative expense Total corporate expenses Net operating Incon (los) Ment 5311.000 96,000 103.000 59,000 9.300 20,000 13,000 300.100 10.700 Sales Region Central East 5.795.000 520.000 241,000 311,000 241,000 235,000 51,000 113,000 16,000 14,300 32,000 28.000 22.000 32.000 613,000 240.000 102,000 100) 14.000 20.000 36.000 $ 23, 300) 42.000 20.000 62,000 $120,000 36,000 20.000 56.000 $ 93,300) 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 0.0 0 0 Total variable expenses 0.0 0.0 0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Traceable fixed expenses 0 Total traceable fixed expenses 0 0.0 0 0.0 0.0 00 $ 0.0 0.0 $ oo 0 0 0.0 $ 0 0.0 Common fixed expenses O 0.0 Total common fixed expenso Not operating income (loss) 0 0.0 West East Total Company Amount % Central Amount Amount % % Amount % Variable expenses: 0 0.0 Total variable expenses 0 0.0 0 0.0 0.0 olo 0 0.0 0 0.0 0 0.0 0.0 Traceable fixed expenses 0 0.0 0 Total traceable fixed expenses 0 0.0 0.0 0.0 0.01$ Oo 0 0.0 $ 0 0 0.0 $ 0.0 Common fixed expenses