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 oints Sales Region Central West East eBook Sales Regional expenses (traceable): 803,000 700,000 Print Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense 236,000 241,000 95,000 107,000 50,000 9,400 20,000 16,000 297,40e 318,000 244,000 112,000 13,600 28,000 44,000 759,600 References 55,000 16, 200 33,000 26,000 Total regional expenses 607,200 15,600 195,800 (59,600) Regional income (loss) before corporate expenses Corporate expenses: Total corporate expenses Net operating income (loss) Advertising (general) General administrative expense 18,000 21,000 39,000 39,000 21,000 60,000 33,000 21,00 54,000 (113,600) $ (23,400) $ 135,800 The cost of goods sold and shipping expense are both variable. All other costs are fixed