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	$	310,000			$	799,000		$	697,000
Regional expenses (traceable):
Cost of goods sold		90,000				240,000			316,000
Advertising		102,000				238,000			239,000
Salaries		58,000				52,000			115,000
Utilities		9,300				16,200			13,600
Depreciation		24,000				33,000			28,000
Shipping expense		13,000				28,000			35,000
Total regional expenses		296,300				607,200			746,600
Regional income (loss) before corporate expenses		13,700				191,800			(49,600	)
Corporate expenses:
Advertising (general)		15,000				38,000			37,000
General administrative expense		19,000				19,000			19,000
Total corporate expenses		34,000				57,000			56,000
Net operating income (loss)	$	(20,300	)		$	134,800		$	(105,600	)

Variable expenses:

Total variable expenses

Traceable fixed expenses:

Total traceable fixed expenses

Common fixed expenses:

Total common fixed expense

Net operating income (loss)