Question

segmented income statement for May is given below Sales Region East West Central $804,000 $704, 000 $312,000 Sales Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense Total regional expenses Regional income (loss) before coгрorate eхрепвея Corporate, expenses: Advertising (general) General administrative expense Total corporate expenses Net operating income (loss) 02:41:54 91,000 104,000 56,000 9,000 19,000 13,000 292,000 235,000 245,000 53,000 16,400 320,000 236,000 108,000 14,400 26,000 43,000 747,400 Print 32,000 33,000 614,400 20,000 189,600 (43,400) 37,000 18,000 $5,000 $(14,000) $134,600 $(94,400) 16,000 18,000 34,000 33,00০ 18,000 51,000 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.) Total Company West Central East Amount Amount % % Amount Amount Variable expenses Total variable expenses Traceable fixed expenses: Total traceable fixed expenses Common fixed expenses Total common fixed expense Net operating income (loss)

Answer 1

Contribution format Income Statement
	Total company		West		Central		East
	Amount	%	Amount	%	Amount	%	Amount	%
Sales	1,820,000	100.00%	312,000	100.00%	804,000	100.00%	704,000	100.00%
Variable expenses
Cost of goods sold	646,000	35.49%	91,000	29.17%	235,000	29.23%	320,000	45.45%
Utilities	39,800	2.19%	9,000	2.88%	16,400	2.04%	14,400	2.05%
Shipping Expense	89,000	4.89%	13,000	4.17%	33,000	4.10%	43,000	6.11%
Total Variable Expenses	774,800	42.57%	113,000	36.22%	284,400	35.37%	377,400	53.61%
Contribution Margin	1,045,200	57.43%	199,000	63.78%	519,600	64.63%	326,600	46.39%
Traceable Fixed Expenses
Advertising	585,000	32.14%	104,000	33.33%	245,000	30.47%	236,000	33.52%
Salaries	217,000	11.92%	56,000	17.95%	53,000	6.59%	108,000	15.34%
Depreciation	77,000	4.23%	19,000	6.09%	32,000	3.98%	26,000	3.69%
Total traceable fixed expenses	879,000	48.30%	179,000	57.37%	330,000	41.04%	370,000	52.56%
Segment Margin	166,200	9.13%	20,000	6.41%	189,600	23.58%	-43,400	-6.16%
Common Fixed Expenses
Advertsing General	86,000	4.73%
General Admin Expense	54,000	2.97%
Total common fixed expense	140,000	7.69%
Net Operating Income	26,200	1.44%