2 S 00:40 Vulcan Company's contribution format income statement for June is as follows: Vulcan tant For the month inded June 10 Bates 30.000 Varie Contributionary 560.000 Fixed expenses perating income $ 25,000 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 3. The company is divided into two sales territories --Northern and Souther. The Northern Territory recorded $400,000 in sales and $160,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory Fored expenses of $176.000 and $140.000 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 Poks and Tibstotaled $140,000 and $260,000. respectively, in the Northern Territory during June. Variable expenses are 27% of the selling price for Paks and 47% for Tibs, Cost records show that $67,200 of the Northern Territory's fixed expenses are traceable to Paks and 557,200 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 ine, Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B