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 Utilities Depreciation Shipping expense Total regional expenses Regional income (loss) before corporate expenses Corporate expenses: Advertising (general) General administrative expense Total corporate expenses West $ 310,000 Sales Region Central $ 804,000 East. $ 699,000 90,000 103,000 241,000 315,000 243,000 242,000 51,000 57,000 109,000 9,100 15,600 13,900 18,000 31,000 26,000 17,000 35,000 44,000 288,100 622,600 749,900 21,900 181,400 (50,900) 14,000 39,000 37,000 20,000 20,000 20,000 34,000 59,000 57,000 $ (12,100) $ (122,400) $ (107,900) Net operating income (loss) The cost of goods sold and shipping expense are both variable. All other costs are fixed. Required