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Brabant NV of the Netherlands is a wholesale distributor of Dutch cheeses that it sells throughout the European Community. Unfortunately, the company's profits have been declining, which has caused considerable concern. To help understand the condition of the company, the managing director of the company has requested that the monthly income statement be segmented by sales territory. Accordingly, the company's accounting department has prepared the following statement for March, the most recent month. (The Dutch currency is the euro which is designated by €.)

Sales Territory

Southern
Europe		 Middle
Europe		 Northern
Europe
  Sales € 312,000     € 804,000      € 703,000    







  Territorial expenses (traceable):





       Cost of goods sold
93,000    
237,000     
315,000    
       Salaries
58,000    
57,000     
108,000    
       Insurance
9,200    
16,300     
14,500    
       Advertising
109,000    
240,000     
245,000    
       Depreciation
21,000    
33,000     
25,000    
       Shipping
16,000    
34,000     
40,000    







  Total territorial expenses
306,200    
617,300     
747,500    







  Territorial income (loss)
    before corporate expenses
5,800    
186,700     
(44,500)   







  Corporate expenses:





       Advertising (general)
13,000    
39,000     
34,000    
       General administrative
19,000    
19,000     
19,000    







  Total corporate expenses
32,000    
58,000     
53,000    







  Net operating income (loss) € (26,200)    € 128,700      € (97,500)   








 Cost of goods sold and shipping expenses are both variable; other costs are all fixed. Brabant NV purchases cheeses at auction and from farmers' cooperatives, and it distributes them in the three territories listed above. Each of the three sales territories has its own manager and sales staff. The cheeses vary widely in profitability; some have a high margin and some have a low margin. (Certain cheeses, after having been aged for long periods, are the most expensive and carry the highest margins.)
Required:
3.

Prepare a new segmented contribution format income statement for May. Show a Total column as well as data for each territory. In addition, for the company as a whole and for each sales territory, show each item on the segmented income statement as a percent of sales. (Note: % columns may not total due to rounding.) (Input all amounts as positive values except losses and their percentages which should be indicated by a minus sign. Round your percentage answers to 1 decimal place. Omit the "€" and "%" signs in your response.)

Total

Southern Europe

Middle Europe

Northern Europe

        Amount
       in €s		           %         Amount
       in €s		           %         Amount
       in €s		           %         Amount
       in €s		           %
  Sales € ?   %? €? %? €? %? €? %?









  Variable expenses:







   Cost of goods sold €? %? €? %? €? %? €? %?
  Shipping expense €? %? €? %? €? %? €? %?









  Total variable expenses
















Contribution margin €? %? €? %? €? %? €? %?









  Traceable fixed expenses:







  Salaries €? %? €? %? €? %? €? %?
  Insurance €? %? €? %? €? %? €? %?
Advertising €? %? €? %? €? %? €? %?
Depreciation €? %? €? %? €? %? €? %?









  Total traceable fixed expenses
















Territorial segment margin €? %? €? %? €? %? €? %?









  Common fixed expenses:







   Advertising (general) €? %? €? %? €? %? €? %?
  General administration €? %? €? %? €? %? €? %?









  Total common fixed expense
















Net operating income (loss) €? %? €? %? €? %? €? %?










Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9957096

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