2 Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 9.44/10 points awarded Scored Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 900,000 408,000 492,000 465,000 $ 27,000 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 $400,000 in sales and $168,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $212,000 and $130,000 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 $200,000 and $200,000, respectively, in the Northern territory during June. Variable expenses are 25% of the selling price for Paks and 59% for Tibs. Cost records show that $90,000 of the Northern Territory's fixed expenses are traceable to Paks and $40,000 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. Req 1A Req 1B Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round the percentage answers to one decimal place (i.e .1234 should be entered as 12.3).) Sales Variable expenses Contribution margin Traceable fixed expenses Territorial segment margin Common fixed expenses Net operating income Sales Territory Total Company Northern Southern Amount % Amount $900,000 ( 100.0 $ 400,000 408,000 45.3 168,000 % 100.0 42.0 Amount % $ 500,000 100.0 240,000 48.0 492,000 54.7 232,000 58.0 260,000 52.0 342,000 38.0 212,000 53.0 130,000 26.0 150,000 16.7 $ 20,000 5.0 $ 130,000 26.0 123,000 13.7 $ 27,000 3.0 Req 1A Req 1B > 2 Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales 9.44/10 Variable expenses points awarded Contribution margin Fixed expenses Scored $900,000 408,000 492,000 465,000 Net operating income $ 27,000 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 $400,000 in sales and $168,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $212,000 and $130,000 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 $200,000 and $200,000, respectively, in the Northern territory during June. Variable expenses are 25% of the selling price for Paks and 59% for Tibs. Cost records show that $90,000 of the Northern Territory's fixed expenses are traceable to Paks and $40,000 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. Req 1A Req 1B Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the percentage answers to one decimal place (i.e.1234 should be entered as 12.3).) Product Line Northern Territory Paks Tibs Amount % Amount % Amount % Sales 400,000 100.0 $ 200,000 Variable expenses 168,000 42.0 50,000 100.0 25.0 $ 200,000 100.0 118,000 59.0 Contribution margin 232,000 58.0 150,000 75.0 82,000 41.0 Traceable fixed expenses 130,000 32.5 90,000 45.0 40,000 20.0 Product line segment margin 102,000 25.5 $ 60,000 30.0 $ 42,000 21.0 Common fixed expenses 212,000 53.0 Sales territory segment loss $(110,000) (27.5) < Req 1A *Red text indicates no response was expected in a call or a formula-based calculation is incorrect; no points deducted. Req 1B >