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 companys first effort at preparing a segmented income statement for May is given below.

	Sales Region
	West				Central			East
Sales	$	313,000			$	803,000		$	704,000
Regional expenses (traceable):
Cost of goods sold		90,000				238,000			317,000
Advertising		101,000				242,000			236,000
Salaries		54,000				58,000			107,000
Utilities		9,500				15,600			13,800
Depreciation		21,000				32,000			25,000
Shipping expense		16,000				32,000			45,000
Total regional expenses		291,500				617,600			743,800
Regional income (loss) before corporate expenses		21,500				185,400			(39,800	)
Corporate expenses:
Advertising (general)		14,000				41,000			32,000
General administrative expense		21,000				21,000			21,000
Total corporate expenses		35,000				62,000			53,000
Net operating income (loss)	$	(13,500	)		$	123,400		$	(92,800	)

The cost of goods sold and shipping expense are both variable. All other costs are fixed.

Required:

3. Prepare a new contribution format segmented income statement for May