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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 (toss) before corporate expenses Corporate expenses Advertising (general) General adsinistrative expense West $311,000 92,000 110,000 59,000 8,900 25,000 15,000 309,900 1,100 14,000 20,000 34,000 $ (32,500) Sales Region Central 5 800,000 245,000 245,000 59,000 15,500 33,000 28,000 625,500 41.000 20,000 61,000 East 1.698,000 313,000 237,000 112,000 13,900 26,000 43,000 744,900 30,000 20,000 38,000 $113,300 $ 104,900) 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 format segmented income statement for May (Round percentage answers to 1 decimal place.)

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 (toss) before corporate expenses Corporate expenses Advertising (general) General adsinistrative expense West $311,000 92,000 110,000 59,000 8,900 25,000 15,000 309,900 1,100 14,000 20,000 34,000 $ (32,500) Sales Region Central 5 800,000 245,000 245,000 59,000 15,500 33,000 28,000 625,500 41.000 20,000 61,000 East 1.698,000 313,000 237,000 112,000 13,900 26,000 43,000 744,900 30,000 20,000 38,000 $113,300 $ 104,900) 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 format segmented income statement for May (Round percentage answers to 1 decimal place.)

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter14: The Balanced Scorecard And Corporate Social Responsibility
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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 (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 1.698,000 Total corporate expenses Net operating income (loss) The cost of goods sold and shipping expense are both variable. All other costs are fixed 313,000 237,000 112,000 13,900 26,000 43,000 744,900 (46,900) 41,000 30,000 20,000 20,000 61,000 50,000 $113,500 $ (104,900) Required: 3. Prepare a new contribution format segmented income statement for May (Round percentage answers to 1 decimal place.)
Transcribed Image Text: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 1.698,000 Total corporate expenses Net operating income (loss) The cost of goods sold and shipping expense are both variable. All other costs are fixed 313,000 237,000 112,000 13,900 26,000 43,000 744,900 (46,900) 41,000 30,000 20,000 20,000 61,000 50,000 $113,500 $ (104,900) Required: 3. Prepare a new contribution format segmented income statement for May (Round percentage answers to 1 decimal place.)
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