Bovine Company, a wholesale distributor of DVDs, has been experiencing losses fo

Question

Bovine Company, a wholesale distributor of DVDs, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement below:

In an effort to isolate the problem, the president has asked for an income statement segmented by geographic market. Accordingly, the Accounting Department has developed the following data:

Geographic Market

Prepare a contribution format income statement segmented by geographic market, as desired by the president.

Geographic Market

Bovine Company, a wholesale distributor of DVDs, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement below:

Explanation / Answer

south

sales 414000

variable expenses 252540

contribution=161460

fixed expenses 266000

operating profit=(104540)

central

sales=660000

variable expenses= 191400

contribution=468600

fixed expenses=325000

operating profit=143600

north

sales=500000

variable expenses= 225000

contribution=275000

fixed expenses=192000

operating profit=83000

total company

sales=1574000

variable expenses=668940

contribution=905060

fixed expenses=783000

operating profit=122060

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