Cervetti Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $320,000, variable expenses of $175,000, and traceable fixed expenses of $39,000. During the same month, the West business segment had sales revenues of $990,000, variable expenses of $512,000, and traceable fixed expenses of $189,000. The common fixed expenses totaled $286,000 and were allocated as follows: $143,000 to the East business segment and $143,000 to the West business segment.

A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

$175,000

$106,000

$(2,000)

$(47,000)