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	$ 311,000	$ 801,000	$ 699,000
Regional expenses (traceable):
Cost of goods sold	92,000	240,000	319,000
Advertising	103,000	236,000	241,000
Salaries	55,000	53,000	106,000
Utilities	8,800	16,000	13,700
Depreciation	23,000	30,000	26,000
Shipping expense	12,000	27,000	35,000
Total regional expenses	293,800	602,000	740,700
Regional income (loss) before corporate expenses	17,200	199,000	(41,700)
Corporate expenses:
Advertising (general)	15,000	41,000	34,000
General administrative expense	21,000	21,000	21,000
Total corporate expenses	36,000	62,000	55,000
Net operating income (loss)	$ (18,800)	(137,000)	$ (96,700)

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.)

Total Company West Central East Amount % Amount % Amount % Amount % Variable expenses: Total variable expenses + Traceable fixed expenses: Total traceable fixed expenses Common fixed expenses: Total common fixed expense Net operating income (loss) 2 of 2