1. prepare a new contribution format segmented income statement

Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them in the West, Central, and East regions. Each of these regions is about the same size and each has its own manager and sales staff. 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 Region West Central East Sales $312,000 $797,000 $ 697,000 Regional expenses (traceable): Cost of goods sold 96,000 236,000 316,000 Advertising 105,000 239,000 237,000 Salaries 59,000 58,000 109,000 Utilities 9,100 16,000 14,000 Depreciation 21,000 32,000 28,000 Shipping expense 17,000 32,000 42,000 Total regional expenses 307, 100 613,000 746,000 Regional income (loss) before corporate expenses 4,900 184,000 (49,000) Corporate expenses : Advertising (general) 15,000 39,000 35,000 General administrative 21,000 21,000 21,000 expense Total corporate expenses 36,000 60,000 56,000 Net operating income (loss) $(31,100) $124.000 $105, 000) The cost of goods sold and shipping expense are both variable. All other costs are fixed