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 West Sales $311,000 Central $800,000 $700,000 East Regional expenses (traceable): Cost of goods sold 96,000 240,000 310,000 Advertising 102,000 241,000 236,000 Salaries 59,000 56,000 106,000 Utilities 8,600 16,100 13,700 Depreciation 22,000 35,000 29,000 Shipping expense 13,000 26,000 44,000 Total regional expenses 300,600 614,100 738,700