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. West $ 311,000 Sales Region Central $ 892,000 East $ 700.000 4 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 Net operating income (loss) 99,000 101,000 58,000 9,000 22,000 14.000 303,000 3,000 241,000 238,000 56,000 16,200 33,000 32,000 616,200 185,800 319,000 243,000 106,000 13,000 29,000 41,000 751,300 (51,800 16,000 21,000 37,000 $ (29,000) 38,000 21,000 59.000 $ 126,300 36,000 21,000 57.000 5 ( 108,800) 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.) Total Company Amount % West Central East Amount % Amount % Amount Sales Variable expenses Cost of goods sold Shipping expense 0 00 0 00 00 0.0 00 0 0.0 0 0 00 0.0 Total variable expenses Contribution margin Traceable fixed expenses Salaries Utilities Advertising Depreciation 0 0.0 0 0.0 0 0.0 0 0.0 Contribution margin Traceable fixed expenses Salaries Utilities Advertising Depreciation 0 0 0 0.0 0 00 00 0.0 0.00 $ 0.0 0.0 0 $ 0 0 0.0 $ 0 Total traceable fixed expenses Gross margin Common fixed expenses Advertising (general) General administrative 0 0.0 Total common fixed expense Net operating income (loss) $ 0 0.0