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 Sales Regional expenses (traceable): Cost of goods sold Advertising Salaries West $ 312,000 Central $ 799,000 East $ 697,000 95,000 106,000 244,000 313,000 235,000 239,000 56,000 57,000 112,000 Utilities 8,600 16,300 13,700 Depreciation 21,000 29,000 28,000 Shipping expense 16,000 26,000 44,000 Total regional expenses 302,600 607,300 749,700 Regional income (loss) before corporate expenses 9,400 191,700 (52,700) Corporate expenses: Advertising (general) 16,000 38,000 36,000 General administrative expense 20,000 20,000 20,000 Total corporate expenses 36,000 58,000 56,000 Net operating income (loss) $ (26,600) $ 133,700 $ (108,700) 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 West Central East Amount % Amount % Amount % Amount % Total variable expenses 0 0.0 0 0.0 0 0.0 0 0.0 Contribution margin 0 0.0 0 0.0 0.0 0 0.0 Traceable fixed expenses: Salaries Utilities Advertising Depreciation Total traceable fixed expenses 0 0.0 0 0.0 Regional segment margin 0 0.0 $ 0 0.0 $ SA Common fixed expenses: Advertising (general) General administration Total common fixed expense 0 0.0 Net operating income (loss) $ 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0