7-26 (Algo) Restructuring a Segmented Income Statement [LO7-4] 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 Region 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 West $ 310,000 Central $ 804,000 East $ 701,000 99,000 243,000 313,000 108,000 243,000 245,000 52,000 55,000 110,000 8,600 15,900 14,400 19,000 34,000 27,000 12,000 25,000 37,000 298,600 615,900 746,400 11,400 188,100 (45,400) 16,000 42,000 34,000 21,000 21,000 21,000 37,000 63,000 55,000 $ (25,600) $ 125,100 $ (100,400) Net operating income (loss) 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.) Variable expenses: Total Company Amount West Central East % Amount % Amount % Amount % Total variable expenses 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Traceable fixed expenses: Total traceable fixed expenses 0 0.0 0 0.0 0 0.0 0 0.0 Total variable expenses 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Traceable fixed expenses: Total traceable fixed expenses 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 $ 0 0.0 Common fixed expenses: Total common fixed expense 0 0.0 Net operating income (loss) $ 0 0.0