Problem 6-26 (Algo) Restructuring a Segmented Income Statement [LO6-4] 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. Sales Regional expenses (traceable):) Cost of goods sold Advertising Salaries West $ 312,000 Sales Region Central 5 801,000 East $700,000 94,000 242,000 104,000 236,000 318,000 230,000 $2,000 56,000 113,000 utilities 8,700 15,600 14,100 Depreciation 22,000 32,000 27,000 Shipping expense 10,000 33,000 40,000 Total regional expenses: 290-700 614,600 750,100 Regional income (loss) before corporate expenses 13,300 186,400 (50,100) Corporate expenses: Advertising (general) 13,000 41,000 34,000 General administrative expense 21,000 21,000 21,000 Total corporate expenses 34,000 62,000 55,000 Net operating income (loss) $ (20,700) $ 134,400 $ (105,100) Total corporate expenses Net operating income (loss) 34,1970 33,59999 $ (20,700) $ 124,400 $ (105,100) 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.) Sales Variable expenses Cost of goods sold Shipping expense Total Company Amount West Central East % Amount % Amount % Amount % 100.0 100.0 100.0 $700,000 100.0 Total variable expenses 0 0.0 0 0.0 0 0.0 0.0 Contribution margin 0 100.0 0 100.0 0 100.0 700,000 100.0 Traceable fixed expenses Salaries Usities Advertising Depreciation Total variable expenses 0 0.0 0 0.0 0 0.0 0 0.0 Contribution margin 0 100.0 0 100.0 0 100.0 700,000 100.0 Traceable fixed expenses Salaries Utilities Advertising Depreciation Total traceable fixed expenses 0 0.0 0 0.0 0 0.0 0 00 0 100.0 $ 0 100.0 $ 0 100.0 $700,000 100.0 Common fixed expenses Advertising (general) General administration i Total common fixed expense 0 0.0 Net oprating income (loss) $ 0 100.0