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	$ 800,000	$ 704,000
Regional expenses (traceable):
Cost of goods sold	97,000	242,000	319,000
Advertising	105,000	245,000	236,000
Salaries	56,000	55,000	109,000
Utilities	8,900	16,000	13,600
Depreciation	24,000	34,000	27,000
Shipping expense	16,000	31,000	42,000
Total regional expenses	306,900	623,000	746,600
Regional income (loss) before corporate expenses	5,100	177,000	(42,600)
Corporate expenses:
Advertising (general)	18,000	41,000	33,000
General administrative expense	20,000	20,000	20,000
Total corporate expenses	38,000	61,000	53,000
Net operating income (loss)	$ (32,900)	$ (116,000)	$ (95,600)

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.)

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