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	$	313,000			$	803,000		$	702,000
Regional expenses (traceable):
Cost of goods sold		99,000				240,000			312,000
Advertising		104,000				237,000			237,000
Salaries		60,000				59,000			112,000
Utilities		9,000				16,300			14,400
Depreciation		19,000				35,000			27,000
Shipping expense		14,000				34,000			37,000
Total regional expenses		305,000				621,300			739,400
Regional income (loss) before corporate expenses		\ 8,000\				181,700			(37,400	)
Corporate expenses:
Advertising (general)		13,000				39,000			34,000
General administrative expense		18,000				18,000			18,000
Total corporate expenses		31,000				57,000			52,000
Net operating income (loss)	$	(23,000	)		$	124,700		$	(89,400	)

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.)

rev: 04_25_2018_QC_CS-125655

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