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			$	799,000		$	705,000
Regional expenses (traceable):
Cost of goods sold		97,000				242,000			319,000
Advertising		109,000				235,000			243,000
Salaries		55,000				58,000			108,000
Utilities		9,300				16,100			14,300
Depreciation		24,000				30,000			27,000
Shipping expense		15,000				33,000			35,000
Total regional expenses		309,300				614,100			746,300
Regional income (loss) before corporate expenses		2,700				184,900			(41,300	)
Corporate expenses:
Advertising (general)		12,000				39,000			32,000
General administrative expense		19,000				19,000			19,000
Total corporate expenses		31,000				58,000			51,000
Net operating income (loss)	$	(28,300	)		$	126,900		$	(92,300	)

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.)