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	$ 310,000	$ 804,000	$ 699,000
Regional expenses (traceable):
Cost of goods sold	91,000	244,000	316,000
Advertising	103,000	240,000	240,000
Salaries	56,000	51,000	111,000
Utilities	8,800	16,500	14,500
Depreciation	21,000	33,000	29,000
Shipping expense	13,000	28,000	38,000
Total regional expenses	292,800	612,500	748,500
Regional income (loss) before corporate expenses	17,200	191,500	(49,500)
Corporate expenses:
Advertising (general)	15,000	40,000	32,000
General administrative expense	20,000	20,000	20,000
Total corporate expenses	35,000	60,000	52,000
Net operating income (loss)	$ (17,800)	(131,500)	$ (101,500)

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.