2 Problem 6-21 Segment Reporting and Decision-Making (L06-4) Vile Company's contribution format income statement for June was follows: 17 Vulcano In Statet Sales Variatie speses Contribution in Wired Het operating 10,000 10 0.000 Management is disappointed with the company's performance and is wondering what can be done to improve prots. By examining sales and cont records, you have determined the following 2. The company is divided into two sales teories - Northern and Southern The Northern Territory recorded $300.000 ins and $150.000 in variable expenses during Jane the remaining sales and variable expenses were recor the So Territory Fored expenses of 5121,000 and $100.000 are traceable to the Northem and Southern Territories, respectively. The rest of the feed expenses are common to the two territories The company is the exclusive distributor for two products-Paks and The Sales of Poks and Tibs totaled $105.000 and $195.000 respectively, in the Northern territory during June. Variable expenses are 20% of the selling price for Paks and 6 for Tibs Cost records show that $52.500 of the Northern Teitory's fed expenses are traceable to Paks and $10.950 tots with the remainder common to the two products Required: a. Prepare contribution format segmented income statements for the total company broken down between sales territories H. Prepare contribution format segmented income statements for the Northem Teritory broken down by product line Vulcan Company's contribution format Income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales $ 800,000 Variable expenses 300.000 Contribution margin 500,000 Fixed expenses 450,000 Net operating income $ 50,000 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: a. The company is divided into two sales territories --Northern and Southern. The Northern Territory recorded $300,000 in sales and $150,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory Fixed expenses of $123,000 and $100,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories. b. The company is the exclusive distributor for two products --Paks and Tibs, Sales of Paks and Tibs totaled $105.000 and $195,000, respectively. In the Northern territory during June. Variable expenses are 24% of the selling price for Poks and 64% for Tibs, Cost records show that $52,500 of the Northern Territory's fixed expenses are traceable to Paks and $40.950 to Tibs, with the remainder common to the two products. Required: 1-a. Prepare contribution format segmented income statements for the total company broken down between sales territories 1-b. Prepare contribution format segmented income statements for the Northern Territory broken down by product line. Complete this question by entering your answers in the tabs below. Required: 1a. Prepare contribution format segmented income statements for the total company broken down between sales territories 1-5. Prepare contribution format segmented income statements for the Northern Territory broken down by product line. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round the percentage answers to one decimal place (.e 1234 should be entered as 12,3) Sales Territory Total Company Northern Amount Amount * Amount % Southern 00 0 00 0 00 0 00 S 0 005 0 00 S 0 0.0 3 Rog Reg 18 > 2 Required: ta Prepare contribution 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 its Complete this question by entering your answers in the tabs below. Reg 1 Red B Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the percentage answers to one decimal place (ie 1234 should be entered as 123) Product Line Tibs Northern Territory Amount Paks Amount * Amount 0 00 0 00 0 00 0 005 D 005 00 $ 0 DO