Losses have been incurred at Millard Corporation for some time. In an effort to isolate the problem and improve the company's performance, management has requested that the monthly income statement be segmented by sales region. The company's first effort at preparing a segmented statement is given below. This statement is for May, the most recent month of activity. Sales Region West Central East Sales $312,000 $796,000 701,000 Regional expenses (traceable) Cost of goods sold 95,000 244,000 310,000 Advertising 108.000 238,000 243.000 Salaries 53,000 55,000 109,000 Utilities 8.700 5,800 14,500 29,000 Depreciation 19,000 29,000 Shipping expense 12,000 29,000 40,000 Total regional expenses 295,700 610,800 745,500 Regional income (loss) before corporate expenses 16,300 85,200 (44,500) Corporate expenses: Advertising (general) 15,000 42,000 37,000 General administrative expense 21,000 21,000 21,000 Total corporate expenses 36,000 63,000 58,000 102,500) Net operating income loss) (19,700) $122,200 Cost of goods sold and shipping expense are both variable: other costs are all fixed. Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them in the three regions given above. The three regions are about the same size, and each has its own manager and sales staff. The products that the company distributes vary widely in profitability