Problem $7-26($Algo$)$ Restructuring a Segmented Income Statement $[$LO$7-4]$

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 profits, management prepared the segmented income statement for May as shown below.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multirow$[$t$]\{2\}\{*\}\{\}$ & $\backslash$multicolumn$\{3\}\{|$c$|\}\{$Sales Region$\}\backslash \backslash$

$\backslash$hline & West & Central & East $\backslash \backslash$

$\backslash$hline Sales & $\backslash$$ $314,000$ & $\backslash$$ $798,000$ & $\backslash$$ $700,000\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Regional expenses $($traceable$)$:$\}\backslash \backslash$

$\backslash$hline Cost of goods sold & $100,000$ & $243,000$ & $316,000\backslash \backslash$

$\backslash$hline Advertising & $104,000$ & $242,000$ & $244,000\backslash \backslash$

$\backslash$hline Salaries & $55,000$ & $54,000$ & $108,000\backslash \backslash$

$\backslash$hline Utilities & $9,000$ & $16,200$ & $14,200\backslash \backslash$

$\backslash$hline Depreciation & $21,000$ & $34,000$ & $27,000\backslash \backslash$

$\backslash$hline Shipping expense & $18,000$ & $29,000$ & $41,000\backslash \backslash$

$\backslash$hline Total regional expenses & $307,000$ & $618,200$ & $750,200\backslash \backslash$

$\backslash$hline Regional income $($loss$)$ before corporate expenses & $7,000$ & $179,800$ & $\backslash ((50,200)\backslash )\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Corporate expenses:$\}\backslash \backslash$

$\backslash$hline Advertising $($general$)$ & $13,000$ & $41,000$ & $32,000\backslash \backslash$

$\backslash$hline General administrative expense & $20,000$ & $20,000$ & $20,000\backslash \backslash$

$\backslash$hline Total corporate expenses & $33,000$ & $61,000$ & $52,000\backslash \backslash$

$\backslash$hline Net operating income $($loss$)$ & $\backslash$$ $\backslash ((26,000)\backslash )$ & $\backslash$$ $118,800$ & $\backslash$$ $\backslash ((102,200)\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

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.

Note: Round percentage answers to $1$ decimal place.

Total Company

West

Central

East