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 Central East

Sales $ 313,000 $ 801,000 $ 697,000

Regional expenses (traceable):

Cost of goods sold 92,000 237,000 319,000

Advertising 106,000 239,000 236,000

Salaries 56,000 60,000 109,000

Utilities 9,000 15,700 13,500

Depreciation 19,000 30,000 30,000

Shipping expense 13,000 30,000 45,000

Total regional expenses 295,000 611,700 752,500

Regional income (loss) before corporate expenses 18,000 189,300 (55,500 )

Corporate expenses:

Advertising (general) 17,000 40,000 34,000

General administrative expense 21,000 21,000 21,000

Total corporate expenses 38,000 61,000 55,000

Net operating income (loss) $ (20,000 ) $ 128,300 $ (110,500 )

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.)