Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes
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Question:
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 companys first effort at preparing a segmented income statement for May is given below.
Sales Region
West Central East
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 $ $ $
The cost of goods sold and shipping expense are both variable. All other costs are fixed.
Required:
Prepare a new contribution format segmented income statement for May. Round percentage answers to decimal place.
Related Book For
ISE Introduction To Managerial Accounting
ISBN: 9781260091755
8th Edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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