Problem 7-26 Restructuring a Segmented Income Statement [LO7-4) 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 East $ 805,000 $ 703,000 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) 96,000 109,000 59,000 9,500 25,000 14,000 312,500 (1,500) 242,000 239,000 58,000 15,700 34,000 27,000 615,700 189,300 319,000 245,000 109,000 13,800 26,000 37,000 749,800 (46, 800) 16,000 21,000 37,000 $ (38,500) 42,000 21,000 63,000 $ 126,300 35,000 21,000 56,000 $(102, 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.) West East Total Company Amount % Central Amount Amount % Amount % Variable expenses: Total variable expenses Traceable fixed expenses: Total traceable fixed expenses Common fixed expenses Total common fixed expense Net operating income (loss)