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			$	795,000		$	698,000
Regional expenses (traceable):
Cost of goods sold		98,000				242,000			318,000
Advertising		102,000				238,000			242,000
Salaries		52,000				56,000			112,000
Utilities		9,500				16,300			13,500
Depreciation		19,000				29,000			28,000
Shipping expense		15,000				28,000			43,000
Total regional expenses		295,500				609,300			756,500
Regional income (loss) before corporate expenses		16,500				185,700			(58,500	)
Corporate expenses:
Advertising (general)		18,000				38,000			37,000
General administrative expense		22,000				22,000			22,000
Total corporate expenses		40,000				60,000			59,000
Net operating income (loss)	$	(23,500	)		$	125,700		$	(117,500	)

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.

Total Company Amount % West Amount Central Amount East Amount % % Variable expenses: Total variable expenses Traceable fixed expenses: Total traceable fixed expenses Common fixed expenses: Total common fixed expense Net operating income (loss)