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	$ 795,000	$ 698,000
Regional expenses (traceable):
Cost of goods sold	96,000	237,000	312,000
Advertising	107,000	238,000	241,000
Salaries	56,000	60,000	106,000
Utilities	8,600	15,800	13,800
Depreciation	22,000	35,000	25,000
Shipping expense	17,000	35,000	38,000
Total regional expenses	306,600	620,800	735,800
Regional income (loss) before corporate expenses	4,400	174,200	(37,800)
Corporate expenses:
Advertising (general)	13,000	38,000	34,000
General administrative expense	20,000	20,000	20,000
Total corporate expenses	33,000	58,000	54,000
Net operating income (loss)	$ (28,600)	$ 116,200	$ (91,800)

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.