Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

148 points Vulcan Company's contribution format income statement for June is as follows 2 02400 tnoone Statenent For the Month Ended June 30 Sales Variable

image text in transcribed
148 points Vulcan Company's contribution format income statement for June is as follows 2 02400 tnoone Statenent For the Month Ended June 30 Sales Variable expenses 900,000 408,000 Contribution nargin axed expenses et operating income 155 000 37,000 Management is disappointed with the company's performance and is wondering what can be done to improve profits By examining sales and cost records, you have determined the following Prine a The company is divided mo two sales termones-Northern and Southern The Northern Territory recorded S400000 n tales and $208,000 in variable expenses during June, the remaining sales and variable expenses were recorded in the Southern Territory Fxed expenses of $164,000 and $125,000 are traceable to the Northern and Southern Territories, respectively The rest of the fixed expenses are common to the two ternitories b The company is the exclusive distributor for two products-Paks and Tibs Sales of Paks and Tibs totaled $150,000 and $250000 respectively, in the Northern territory during June Variable expenses are 22% of the selling price for Paks and 70% for Tits Cost records show that $67,500 of the Northern Territory's fixed expenses are traceable to Paks and $60,000 to Tibs, with the remainder common to the two products Required 1a Prepare contibution format segmented income statements for the total company broken down between sales territories b Prepare contribution format segmented income statements for the Northern Territory broken down by product line Complete this uestion by entering your answers in the tabs below. Rea 1A Reg 1 Prepare contribution format segmented income statements for the total company broken down between sales temtories. ( the percentage anewrs to one decimal place e 1234 should be entered as 12.3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

3rd Edition

0070967601, 978-0070967601

More Books

Students also viewed these Accounting questions

Question

What are the role of supervisors ?

Answered: 1 week ago