The following is a financial information from MayPagAsaPa Company: Additional information:The company purchase office supplies from big manufacturers and distributes among different segments. Cost of goods sold and shipping expenses are both variable.1.Prepare a new contribution format segmented income statement.2.Analyze your requirement #1. What points that might help to improve the company’s performance would you bring to management’s attention?3.Compare your output with Requirement 1 with the information above. List the items you think that is an error/disadvantage/weakness of the given data. Sales RegionWestCentralEastSales$450,000 $800,000 $ 750,000Regional expenses (traceable):Cost of goods soldAdvertising...162,900280,000376,500108,000200,000210,000Salaries..90,00088,000135,000Utilities12,00015,00030,00013,500Depreciation..Shipping expense..27,00028,00017,10032,00028,500Total regional expenses..418,500640,000795,000Regional income (loss) before corporate expenses...31,500160,000(45,000)Corporate expenses:Advertising (general)..General administrative expense.18,00050,00032,00030,00050,00050,000Total corporate expenses68,00082,00080,000Net operating income (loss).$ (36,500) $ 78,000 $(125,000)

The contribution margin is computed by subtracting the variable cost from the sale revenue. The…

Answered: Sales Region West Central East Sales…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The following is a financial information from MayPagAsaPa Company:

Additional information:
The company purchase office supplies from big manufacturers and
distributes among different segments. Cost of goods sold and shipping expenses
are both variable.

1.Prepare a new contribution format segmented income statement.

2.Analyze your requirement #1. What points that might help to improve the
company’s performance would you bring to management’s attention?

3.Compare your output with Requirement 1 with the information above. List
the items you think that is an error/disadvantage/weakness of the given
data.

Sales Region
West
Central
East
Sales
$450,000 $800,000 $ 750,000
Regional expenses (traceable):
Cost of goods sold
Advertising...
162,900
280,000
376,500
108,000
200,000
210,000
Salaries..
90,000
88,000
135,000
Utilities
12,000
15,000
30,000
13,500
Depreciation..
Shipping expense..
27,000
28,000
17,100
32,000
28,500
Total regional expenses..
418,500
640,000
795,000
Regional income (loss) before corporate expenses...
31,500
160,000
(45,000)
Corporate expenses:
Advertising (general)..
General administrative expense.
18,000
50,000
32,000
30,000
50,000
50,000
Total corporate expenses
68,000
82,000
80,000
Net operating income (loss).
$ (36,500) $ 78,000 $(125,000)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions