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. West 311,000 Sales Region Central East $ 801,000 $ 697,000 Sales Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense Total regional expenses Regional income (loss) before corporate expenses Corporate expenses Advertising (general) General administrative expense Total corporate expenses Not operating income (100) 95,000 103,000 $7,000 8,600 20,000 13,000 296,600 14,400 244,000 236,000 58,000 15,900 31,000 32,000 616,900 184,100 310,000 242,000 111,000 14,100 30,000 37,000 744,100 (47,100) 15,000 21,000 36,000 5 (21,600) 38,000 36,000 21,000 21,000 59,000 257,000 $ 125,100 $(104,100) The cost of goods sold and shipping expense are both variable. All other costs are fixed West Central East Total Company Amount % Amount Amount % Amount % Variable expenses Total variable expenses 0 0.0 0 0.0 0 0.0 0 0.0 0.0 0 0.0 0 0.0 0 0.0 0 Traceable fixed expenses: Total traceable fixed expenses 0 0.0 0 0.0 0.01$ 0 0 0.0 0.0 $ 0 0 0.0 0.0 0 0.0 $ 0 Common fixed expenses