as Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes themin 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 thatthe monthly income statement be segmented by sales region. The company's first effort at preparing a segmented income statementfor May is given below.SalesRegional expenses (traceable):Cost of goods soldAdvertisingSalariesWest$ 313,00097,000Sales RegionCentral$ 801,000East$ 705,000242,000315,000102,000237,000241,00052,00057,000109,000Utilities9,30016,50014,000Depreciation21,00032,00027,000Shipping expense13,00033,00042,000Total regional expenses294,300617,500748,000Regional income (loss) before corporate expenses18,700183,500(43,000)Corporate expenses:Advertising (general)16,00043,00033,000General administrative expense20,00020,00020,000Total corporate expenses36,00063,00053,000Net operating income (loss)$ (17,300)$ 120,500$ (96,000)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 expensesTraceable fixed expenses:Total traceable fixed expensesCommon fixed expenses:Total common fixed expenseNet operating income (loss)Total CompanyAmountWestCentralEast%Amount%Amount%Amount%

The contribution segment income statement is a statement that is helpful in finding our contribution…

Answered: Required: 3. Prepare a new contribution…

Required: 3. Prepare a new contribution format segmented income statement for May. (Round percentage answers to 1 decimal place.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 4EA: The following information is from Daves Sporting Goods. Daves is a Midwest sporting goods store with...

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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) West $ 312,000 94,000 100,000 56,000 8,600 25,000 16,000 299,600 12,400 13,000 20,000 33,000 $ (20,600) Sales Region Central $ 796,000…
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 Region West Central East Sales $ 311,000 $ 796,000 $ 703,000 Regional expenses (traceable): Cost of goods sold 94,000 240,000 312,000 Advertising 105,000 236,000 240,000 Salaries 54,000 54,000 107,000 Utilities 8,700 16,100 13,600 Depreciation 21,000 35,000 28,000 Shipping expense 17,000 31,000 36,000 Total regional expenses 299,700 612,100 736,600 Regional income (loss) before corporate expenses 11,300…
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 (less) before corporate expenses Corporate expenses Advertising (general) General administrative expense Mest $311,000 92,000 110,000 59,000 8.900 25,000 15,000 309,900 1.100 14,000 20,000 34,000 5 (32,900) Sales Region Central $800,000 245,000 245,000 59,000 15,500 33,000 28,000 hiso 2 East…
I am resubmitting this question as I am getting flagged that there is information missing. Losses have been incurred at Millard Corporation for some time. In an effort to isolate the problem and improve the company’s performance, management has requested that the monthly income statement be segmented by sales region. The company’s first effort at preparing a segmented statement is given below. This statement is for May, the most recent month of activity. Sales Region West Central East Sales $ 311,000 $ 803,000 $ 699,000 Regional expenses (traceable): Cost of goods sold 95,000 243,000 317,000 Advertising 103,000 244,000 235,000 Salaries 52,000 51,000 107,000 Utilities 8,800 15,600 14,400 Depreciation 25,000 31,000 27,000 Shipping expense 12,000 29,000 39,000 Total regional expenses 295,800 613,600 739,400…
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 chá Shipping expense Total regional expenses Regional income (loss) before corporate expenses Corporate expenses: Advertising (general) General administrative expense 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 West $313,000 % 98,000 101,000 51,000 8,800 19,000 13,000 290,800 22,200 Total corporate expenses Net operating income (loss) The cost of goods sold and shipping expense are both variable. All other costs are fixed. Required: 3. Prepare a new contribution…
Toxaway Company is a merchandiser that segments its business into two divisions—Commercial and Residential. The company’s accounting intern was asked to prepare segmented income statements that the company’s divisional managers could use to calculate their break-even points and make decisions. She took the prior month’s companywide income statement and prepared the absorption format segmented income statement shown below: Total Company Commercial Residential Sales $ 930,000 $ 310,000 $ 620,000 Cost of goods sold 623,100 170,500 452,600 Gross margin 306,900 139,500 167,400 Selling and administrative expenses 288,000 128,000 160,000 Net operating income $ 18,900 $ 11,500 $ 7,400 In preparing these statements, the intern determined that Toxaway’s only variable selling and administrative expense is a 10% sales commission on all sales. The company’s total fixed expenses include $69,000 of common fixed expenses that…
Losses have been incurred at Millard Corporation for some time. In an effort to isolate the problem and improve the company’s performance, management has requested that the monthly income statement be segmented by sales region. The company’s first effort at preparing a segmented statement is given below. This statement is for May, the most recent month of activity. Sales Region West Central East Sales $ 311,000 $ 803,000 $ 699,000 Regional expenses (traceable): Cost of goods sold 95,000 243,000 317,000 Advertising 103,000 244,000 235,000 Salaries 52,000 51,000 107,000 Utilities 8,800 15,600 14,400 Depreciation 25,000 31,000 27,000 Shipping expense 12,000 29,000 39,000 Total regional expenses 295,800 613,600 739,400 Regional income (loss) before corporate expenses 15,200 189,400 (40,400 )…
Big Apple Design Company specializes in designing commercial office space in Chicago. The firm’s president recently reviewed the following income statement and noticed that operating profits were below her expectations. She had a hunch that certain customers were not profitable for the company and asked the controller to perform a customer-profitability analysis showing profitability by customer for the month of March. Required: Put yourself in the position of Big Apple’s controller and write a memo to the president to accompany the customer-profitability graph. Comment on the implications of the customer-profitability analysis and raise four or more questions that should be addressed by the firm’smanagement team.
Swain Athletic Gear (SAG) operates six retall outlets in a large Midwest city. One is in the center of the city on Cornwall Street and the others are scattered around the perimeter of the city. Management at SAG is concerned about declining sales and profitability of the Cornwall store and believes that outlet has been a drag on profits in recent years. The most recent Income statement for the Cornwall store follows. SWAIN ATHLETIC GEAR Cornwall Street Store Income Statement For the Year Ending February 28 Sales revenue Costs Cost of goods sold Advertising Store administrative salaries Sales commissions Leases and utilities Allocated corporate support Total costs Net loss before tax benefit Tax benefit at 25% Net loss The CFO at SAG has asked for your advice on closing the Cornwall Street store. If the Cornwall Street store is closed, neither total corporate support costs nor operations or costs of the other stores are expected to change. Required: a. Using the worksheet below,…
Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and Residential. The company's accounting intern was asked to prepare segmented income statements that the company's divisional managers could use to calculate their break-even points and make decisions. She took the prior month's companywide income statement and prepared the absorption format segmented income statement shown below: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income. Total Company $ 885,000 572,300 312,700 276,000 $36,700 Commercial Residential $ 295,000 $ 590,000 418,900 153,400 141,600 171, 100 122,000 $ 19,600 154,000 $ 17,100 In preparing these statements, the intern determined that Toxaway's only variable selling and administrative expense is a 10% sales commission on all sales. The company's total fixed expenses include $73,500 of common fixed expenses that would continue to be incurred even if the Commercial or Residential…
Toxaway Company is a merchandiser that segments its business into two divisions—Commercial and Residential. The company’s accounting intern was asked to prepare segmented income statements that the company’s divisional managers could use to calculate their break-even points and make decisions. She took the prior month’s companywide income statement and prepared the absorption format segmented income statement shown below: Sales $ 750,000 $ 250,000 $ 500,000 Cost of goods sold 500,000 140,000 360,000 Gross margin 250,000 110,000 140,000 Selling and administrative expenses 240,000 104,000 136,000 Net operating income $ 10,000 $ 6,000 $ 4,000 ln preparing these statements, the intern determined that Toxaway’s only variable selling and administrative expense is a 10% sales commission on all sales. The company’s total fixed expenses include $72,000 of common fixed expenses that would continue to be incurred even if the…
Toxaway Company is a merchandiser that segments its business into two divisions—Commercial and Residential. The company’s accounting intern was asked to prepare segmented income statements that the company’s divisional managers could use to calculate their break-even points and make decisions. She took the prior month’s companywide income statement and prepared the absorption format segmented income statement shown below: Sales $ 750,000 $ 250,000 $ 500,000 Cost of goods sold 500,000 140,000 360,000 Gross margin 250,000 110,000 140,000 Selling and administrative expenses 240,000 104,000 136,000 Net operating income $ 10,000 $ 6,000 $ 4,000 ln preparing these statements, the intern determined that Toxaway’s only variable selling and administrative expense is a 10% sales commission on all sales. The company’s total fixed expenses include $72,000 of common fixed expenses that would continue to be incurred even if the…