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			$	800,000		$	703,000
Regional expenses (traceable):
Cost of goods sold		92,000				239,000			320,000
Advertising		101,000				242,000			239,000
Salaries		59,000				56,000			115,000
Utilities		9,100				16,000			14,100
Depreciation		25,000				30,000			28,000
Shipping expense		18,000				32,000			37,000
Total regional expenses		304,100				615,000			753,100
Regional income (loss) before corporate expenses		\ 8,900\				185,000			(50,100	)
Corporate expenses:
Advertising (general)		18,000				42,000			35,000
General administrative expense		19,000				19,000			19,000
Total corporate expenses		37,000				61,000			54,000
Net operating income (loss)	$	(28,100	)		$	124,000		$	(104,100	)

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