9. Award: 7.00 points 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 regic 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 $ 312.000 Sales Region Central $ 795,000 East $ 697,000 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) 97.000 108,000 59,000 9,000 23,000 14,000 310,000 240,000 237,000 52,000 16,000 32,000 29,000 606,000 189.000 317,000 236,000 111,000 14,100 28,000 41,000 747 100 (50,100) 2.000 15,000 21,000 36,000 $ (34,000) 42,000 21,000 63,000 $ 126,000 37.000 21,000 58,000 $ (108,100) 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 West Central East Amount % Amount % Amount Amount % Millard Corporation is a wholesale distributor of office products. It purchase 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 segmented by sales region. The company's first effort at preparing a segmented income statement for May is given below West $312.000 Sales Region Central $ 795.000 East $ 697 000 Sales Regional expenses (traceable) Cost of goods sold Advertising Salaries 97.000 108,000 59,000 9.000 23.000 14.000 310,000 2.000 240,000 237,000 52.000 16 000 32 000 29 000 608,000 189.000 317.000 236 000 111,000 14 100 28.000 41 000 747 100 (50 100 Depreciation Shipping expense Total regional expenses Regional income foss) before corporate expenses Corporate expenses Advertising (general) General administrative expense Total corporate expenses Net operating income (losa) 15,000 21.000 36 000 $ (34,000) 42.000 21 000 63 000 $ 126,000 37,000 21 000 58 000 $ (106,100) 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.) Central East West Total Company Amount % % Amount Amount Amount Variable expenses: Total variable expenses Traceable fixed expenses Total traceable fixed expenses Common fixed expenses Total common fed expense Net operating income (los)