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	$	450,000			$	800,000		$	750,000
Regional expenses (traceable):
Cost of goods sold		162,900				280,000			376,500
Advertising		108,000				200,000			210,000
Salaries		90,000				88,000			135,000
Utilities		13,500				12,000			15,000
Depreciation		27,000				28,000			30,000
Shipping expense		17,100				32,000			28,500
Total regional expenses		418,500				640,000			795,000
Regional income (loss) before corporate expenses		31,500				160,000			(45,000	)
Corporate expenses:
Advertising (general)		18,000				32,000			30,000
General administrative expense		50,000				50,000			50,000
Total corporate expenses		68,000				82,000			80,000
Net operating income (loss)	$	(36,500	)		$	78,000		$	(125,000	)

The cost of goods sold and shipping expense are both variables. All other costs are fixed

Required:

3. Prepare a new contribution format segmented income statement for May. (Round Total Company values to 1 decimal place.)