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. Sales Region Sales Regional expenses (traceable): Cost of goods sold Advertising Salaries West $ 312,000 Central $ 799,000 East $ 699,000 98,000 106,000 54,000 242,000 235,000 314,000 237,000 54,000 109,000 Utilities 9,300 16,200 13,800 Depreciation 20,000 30,000 29,000 Shipping expense 17,000 34,000 40,000 Total regional expenses 304,300 611,200 742,800 Regional income (loss) before corporate expenses 7,700 187,800 (43,800) Corporate expenses: Advertising (general) 16,000 41,000 35,000 General administrative expense 19,000 Total corporate expenses 35,000 19,000 60,000 19,000 54,000 Net operating income (loss) $ (27,300) $ 127,800 $ (97,800) 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. (Round percentage answers to 1 decimal place.) > Answer is complete but not entirely correct. Sales Variable expenses: Cost of goods sold Shipping expense Total Company Amount West Central East % Amount % Amount % Amount % $ $ $ $ 2,000,000 100.0 100.0 100.0 100.0 450,000 800,000 750,000 819,400 x 77,600 41.0 162,900 3.9 17,100 36.2 280,000 3.8 32,000 35.0 376,500 4.0 28,500 X 50.2 x 3.8 Total variable expenses 897,000 Contribution margin 1,103,000 44.9 55.1 180,000 270,000 40.0 60.0 312,000 488,000 39.0 61.0 405,000 345,000 54.0 46.0 Traceable fixed exnenses. < Prev 1 of 3 Next >