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	$	313,000			$	802,000		$	703,000
Regional expenses (traceable):
Cost of goods sold		96,000				241,000			320,000
Advertising		109,000				243,000			237,000
Salaries		57,000				54,000			111,000
Utilities		9,400				15,800			14,200
Depreciation		24,000				33,000			26,000
Shipping expense		13,000				27,000			37,000
Total regional expenses		308,400				613,800			745,200
Regional income (loss) before corporate expenses		\ 4,600\				188,200			(42,200	)
Corporate expenses:
Advertising (general)		13,000				41,000			37,000
General administrative expense		18,000				18,000			18,000
Total corporate expenses		31,000				59,000			55,000
Net operating income (loss)	$	(26,400	)		$	129,200		$	(97,200	)

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)