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. West $ 310,000 Sales Region Central East $ 800,000 $ 699,000 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 Net operating income (loss) 98,000 106,000 56,000 9,400 21,000 13,000 303,400 6,600 238,000 237,000 52,000 15,500 30,000 28,000 600,500 199,500 318,000 236,000 109,000 13,900 27,000 43,000 746,900 (47,900) 18,000 20,000 38,000 $ (31,400) 42,000 20,000 62,000 $ 137,500 37,000 20,000 57,000 $(104,900) The cost of goods sold and shipping expense are both variable. All other costs are fixed. West Central East Total Company Amount % Amount % Amount % Amount % Variable expenses: 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