Sales region West Central East Sales $313,000 $797,000 $702,000 Regional expenses (traceable): Cost of goods sold 93,000 243,000 318,000 Advertising $104,000 $242,000 $240,000 Salaries $60,000 $56,000 $106,000 Utilities $8,600 $16,300 $13,500 Depreciation $21,000 $33,000 $29,000 Shipping expense $12,000 $29,000 $44,000 Total regional expenses $298,600 $619,300 $750,500 Regional income (loss) before corporate expenses $14,400 $177,700 ($48,500) Corporate expenses: Advertising (general) $16,000 42,000 35,000 General administrative expense 19,000 $19,000 $19,000 Total corporate expenses Net operating income (loss) $35,000 $61,000 $54,000 ($20,600) $116,700 ($102,500) Total Company West Central East Amount % Amount % Amount % Amount % Sales Variable expenses: Costs of goods sold 1812000 100% 311,000 100% 797,000 100% 704,000 100% 657000 36% 95,000 31% 244,000 31% 318000 45% Shipping expense 84,000 5% 12,000 4% 30000 4% 42000 6% Total variable expense 741,000 41% 107,000 34% 274000 34% 360000 51% Contribution margin 1,071,000 59% 204,000 66% 523000 66% 344000 49% Traceable fixed expense: Salaries 731,000 40% 54,000 17% 570000 72% 107000 15% Utilities 38,200 2% 8,600 3% 15600 2% 14000 2% Advertisment 591,000 33% 109,000 35% 240000 30% 242000 34% Deprecation 81,000 4% 20,000 6% Total traceable fixed expense 1,441,200 80% 191,600 62% 33000 345600 4% 28000 4% 108% 391000 56% Common fixed expense: Advertising (general) 431,000 24% 16,000 5% 380000 48% 35000 5% General admission 60,000 3% 20,000 6% 20000 3% 20000 3% Total common fixed expense 491,000 27% 36,000 12% 580000 50% 55000 8% Net operating income -861,200 -48% -23,600 -8% 119400 15% -102000 -14%