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 company's first effort at preparing a segmented income statement for May is given below. Sales Region West Central East 5 Sales $ 450,000 $ 800,000 750,000 Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense 162,900 108,000 90,000 13,500 27,000 17,100 418,500 280,000 200,000 88,000 12,000 28,000 32,000 640,000 376,500 210,000 135,000 15,000 30,000 28,500 795,000 Total regional expenses Regional income (loss) before corporate expenses 31,500 160,00045,000) Corporate expenses: 2 Advertising (general) General administrative expense 18,000 50,000 68,000 32,000 50,000 82,000 30,000 50,000 80,000 Total corporate expenses Net operating income (loss) (36,500) 78,000 (125,000) The cost of goods sold and shipping expense are both variable. All other costs are fixed