6-26 (Algo) Restructuring a Segmented Income Statement [LO6-4] 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 Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense Total regional expenses Regional income (loss) before corporate expenses Corporate expenses: Advertising (general) General administrative expense Total corporate expenses Net operating income (loss) West $313,000 Sales Region Central $802,000 East $202,000 99,000 107,000 230,000 319,000 240,000 242,000 55,000 50,000 106,000 9,100 15,000 13,700 10,000 29,000 26,000 16,000 30,000 42,000 304,100 600,800 748,700 8,900 201,200 (46-700) 18,000 41,000 19,000 19,000 38,000 19,000 37,000 60,000 57,000 $ (28,100) $ (141,200) $ (103,700) 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.) 3. Prepare a new contribution format segmented income statement for May. (Round percentage answers to 1 decimal place.) 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 Central East % Amount % Amount % Amount %