(Solved): Millard Corporation is a wholesale distributor of office products. It purchases office products fro ...

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 West Central East Sales $ 310,000 $ 798,000 $ 703,000 Regional expenses (traceable): Cost of goods sold 96,000 244,000 318,000 Advertising 107,000 239,000 245,000 Salaries 56,000 57,000 111,000 Utilities 9,200 15,900 14,400 Depreciation 19,000 29,000 27,000 Shipping expense 16,000 26,000 43,000 Total regional expenses 303,200 610,900 758,400 Regional income (loss) before corporate expenses 6,800 187,100 (55,400 ) Corporate expenses: Advertising (general) 16,000 43,000 36,000 General administrative expense 19,000 19,000 19,000 Total corporate expenses 35,000 62,000 55,000 Net operating income (loss) $ (28,200 ) $ 125,100 $ (110,400 ) 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.)