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 Region West Sales $ 313,000 Central $800,000 East $695,000 Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities 93,000 100,000. 239,000 311,000 236,000 237,000 52,000 58,000 110,000 8,900 15,600 14,100 Depreciation 21,000 32,000 29,000 Shipping expense 13,000 34,000 35,000 ces Total regional expenses 287,900 614,600 736,100 Regional income (loss) before corporate expenses, 25,100 185,400 (41,100) Corporate expenses: Advertising (general) 13,000 39,000 33,000 General administrative expense 19,000 19,000 19,000 Total corporate expenses 32,000 58,000 52,000 Net operating income (loss) $ (6,900) $127,400 $ (93,100) The cost of goods sold and shipping expense are both variable. All other costs are fixed. 54 ces 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 Central East % Amount % Amount % Amount %