Losses have been incurred at Millard Corporation for some time. In an effort to isolate the problem and improve the companys performance, management has requested that the monthly income statement be segmented by sales region. The companys 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	$	802,000	$	703,000
Regional expenses (traceable):
Cost of goods sold		96,000		241,000		311,000
Advertising		107,000		241,000		244,000
Salaries		59,000		53,000		115,000
Utilities		8,900		16,300		13,900
Depreciation		19,000		35,000		27,000
Shipping expense		15,000		31,000		44,000
Total regional expenses		304,900		617,300		754,900
Regional income (loss) before corporate expenses		7,100		184,700		(51,900)
Corporate expenses:
Advertising (general)		17,000		39,000		37,000
General administrative expense		19,000		19,000		19,000
Total corporate expenses		36,000		58,000		56,000
Net operating income (loss)	$	(28,900)	$	126,700	$	(107,900)

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.

Required:

3.

Prepare a new contribution format segmented income statement for May. Show a Total column as well as data for each region. In addition, for the company as a whole and for each sales region, show each item on the segmented income statement as a percent of sales. (Note: % columns may not total due to rounding.) Round percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3).

Total Company West Central East Amount Amount Amount Amount Sales 100.0 100.0 100.0 100.0 Variable expenses Cost of goods sold Shipping expense Total variable expenses Contribution margin Traceable fixed expenses Advertising Salaries Utilities Depreciation Total traceable fixed expenses Regional segment margin Common fixed expenses Advertising (general) General Administrative expense Total common fixed expense Net operating income (loss)