Millard Corporation is a wholesale distributor of office products

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 $ 313,000 $ 797,000 $ 697,000 Regional expenses (traceable): Cost of goods sold 91,000 236,000 314,000 Advertising 109,000 237,000 236,000 Salaries 56,000 54,000 110,000 Utilities 8,900 15,500 13,600 Depreciation 24,000 30,000 30,000 Shipping expense 13,000 34,000 44,000 Total regional expenses 301,900 606,500 747,600 Regional income (loss) before corporate expenses 11,100 190,500 (50,600) Corporate expenses: Advertising (general) 17,000 37,000 34,000 General administrative expense 19,000 19,000 19,000 Total corporate expenses 36,000 56,000 53,000 Net operating income (loss) $ (24,900) $ 134,500 $(103,600) 
The cost of goods sold and shipping expense are both variable. All other costs are fixed.