Problem 7-26 Restructuring a Segmented Income Statement [L07-4 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 Centra West Sales Regional expenses (traceable): 703 Cost of goods sold Advertising 92,000 185,000 55,000 8,900 20,000 13,000 243,000 318,000 235,000 110,000 13,900 29,000 35,000 239,000 58,000 16,100 31,000 25,000 612,100 utilities Depreciation Shipping expense nses 19,100 (37,900) Regional income (loss) before corporate expenses Corporate expenses: 15,000 21,000 35,800 Advertising (general) General administrative expense 41,000 21,008 21,008 36 Total corporate expenses 92,000 105,000 239,000 58,900 16,100 31,060 ising (gerieral) 15,000 41,800 nces The cost of goods sold and shipping expense are both variable. All other costs are fixed. 3. Prepare a new contribution format s income statement for May. (Round percentage answers to 1 decimal place.) Total C East