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	$ 312,000	$ 800,000	$ 697,000
Regional expenses (traceable):
Cost of goods sold	99,000	240,000	318,000
Advertising	106,000	243,000	244,000
Salaries	57,000	54,000	115,000
Utilities	8,600	16,200	13,900
Depreciation	24,000	31,000	28,000
Shipping expense	15,000	33,000	41,000
Total regional expenses	309,600	617,200	759,900
Regional income (loss) before corporate expenses	2,400	182,800	(62,900)
Corporate expenses:
Advertising (general)	13,000	42,000	33,000
General administrative expense	21,000	21,000	21,000
Total corporate expenses	34,000	63,000	54,000
Net operating income (loss)	$ (31,600)	$ 119,800	$ (116,900)

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	%
Salesselected answer correct	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Variable expenses:
Cost of goods soldselected answer correct	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Shipping expenseselected answer correct	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Total variable expenses	0	0.0	0	0.0	0	0.0	0	0.0
Contribution marginselected answer correct	0	0.0	0	0.0	0	0.0	0	0.0
Traceable fixed expenses:
Advertisingselected answer correct	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Salariesselected answer correct	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Utilitiesselected answer correct	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Depreciationselected answer correct	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Total traceable fixed expenses	0	0.0	0	0.0	0	0.0	0	0.0
Regional segment marginselected answer correct	0	0.0	$0	0.0	$0	0.0	$0	0.0
Common fixed expenses:
Advertising (general)selected answer correct
General administrationselected answer correct
not attempted
not attempted
Total common fixed expense	0	0.0
Net operating income (loss)	$0	0.0