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 format segmented income statement for May. (Round percentage answers to 1 decimal place.) 16,000 21,000 37,000 $ (14,800) Sales Region Central $ 802,000 West Amount 242,000 243,000 51,000 16,200 31,000 28,000 611,200 190,800 39,000 21,000 60,000 $ 130,800 % East $ 700,000 314,000 237,000 106,000 13,700 29,000 45,000 744,700 (44,700) 33,000 21,000 54,000 $ (98,700) Central Amount % Amount East %
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 format segmented income statement for May. (Round percentage answers to 1 decimal place.) 16,000 21,000 37,000 $ (14,800) Sales Region Central $ 802,000 West Amount 242,000 243,000 51,000 16,200 31,000 28,000 611,200 190,800 39,000 21,000 60,000 $ 130,800 % East $ 700,000 314,000 237,000 106,000 13,700 29,000 45,000 744,700 (44,700) 33,000 21,000 54,000 $ (98,700) Central Amount % Amount East %
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 6PB: Using the information for Lighthizer Trading Company, prepare the income statement to include all...
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Transcribed Image Text: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 format segmented income statement for May. (Round percentage answers to 1 decimal place.)
16,000
21,000
37,000
$ (14,800)
Sales Region
Central
$ 802,000
West
Amount
242,000
243,000
51,000
16,200
31,000
28,000
611,200
190,800
39,000
21,000
60,000
$ 130,800
%
East
$ 700,000
314,000
237,000
106,000
13,700
29,000
45,000
744,700
(44,700)
33,000
21,000
54,000
$ (98,700)
Central
Amount
%
Amount
East
%
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