Losses have been incurred at Millard Corporation for some time.

In an effort to isolate the problem and improve the companyAc??cs

performance, management has requested that the monthly income

statement be segmented by sales region. The companyAc??cs first effort

at preparing a segmented statement is given below. This statement

is for May, the most recent month of activity.

Sales Region

West

Central

East

(traceable):

       Cost of goods sold

       Advertising

       Salaries

       Utilities

       Depreciation

       Shipping expense

expenses

(loss)

    before corporate expenses

expenses:

       Advertising

(general)

       General administrative

expense

expenses

(loss)

   Cost of goods sold and shipping expense are

both variable; other costs are all fixed. Millard Corporation is a

wholesale distributor of office products. It purchases office

products from manufacturers and distributes them in the three

regions given above. The three regions are about the same size, and

each has its own manager and sales staff. The products that the

company distributes vary widely in profitability.

Prepare a new contribution format segmented income statement for

May. Show a Total column as well as data for each region. In

addition, for the company as a whole and for each sales region,

show each item on the segmented income statement as a percent of

sales. (Note: % columns may not total due to rounding.)

Round percentage answers to 1 decimal place (i.e .1234

should be entered as 12.3). ** I have to fill in the side labesl as

well!**