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.

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.)

	Sales Region
	West				Central			East
Sales	$	311,000			$	803,000		$	696,000
Regional expenses (traceable):
Cost of goods sold		94,000				244,000			315,000
Advertising		107,000				235,000			239,000
Salaries		58,000				57,000			115,000
Utilities		9,300				15,900			14,000
Depreciation		22,000				28,000			29,000
Shipping expense		13,000				26,000			44,000
Total regional expenses		303,300				605,900			756,000
Regional income (loss) before corporate expenses		7,700				197,100			(60,000	)
Corporate expenses:
Advertising (general)		13,000				38,000			38,000
General administrative expense		19,000				19,000			19,000
Total corporate expenses		32,000				57,000			57,000
Net operating income (loss)	$	(24,300	)		$	140,100		$	(117,000)