and Millard Corporation is a wholesale distibutor of office products. It purchases office products from manufacturers in the West, Central, and East regions. Each of these regions is about the same size and each hes 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 re for May is given below gion. The company's first effort at preparing a segmented income statement Test East S 450, 000 00.000 750.000 Sales Regional expenses (traceable): 280.000 200, 000 88, 000 12,000 28, 000 376,500 210.000 135, 000 15,000 30.000 162, 900 103. 000 Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense 90 13, 500 27,000 640,000 95 00 Total regional expenses Regional income (loss) before corporate expenses Corporate expenses: 18, 000 32.000 30, 000 Advertising (general) General adninistrative expense Total corporate expenses Net operat ing income (loss) S (36, 500) S 78,000 (125. 000) The cost of goods sold and shipping expense are both variable. All ther costs are fixed