chapter 7 question 4

Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Incone Statenent For the Month Ended June 30 Sales $ 900,000 Variable expenses 400,000 Contribution margin 492,000 Fixed expenses 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 territores - Northern and Southern. The Northern Territory recorded $400.000 in sales and $228,000 in varlable expenses during June: the remaining sales and variable expenses were recorded in the Southern Territory Fixed expenses of $168,000 and $130,000 are traceable to the Northern and Southern Territorles, 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 $140,000 and $260,000, respectively. In the Northern territory during June. Variable expenses are 31% of the selling price for Paks and 71% for Tibs. Cost records show that $64,400 of the Northern Territory's fixed expenses are traceable to Paks and $52,000 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 HYMN 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. Reg 1A Reg 1B Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round your percentage answers to 1 decimal place (1.0.1234 should be entered as 12.3). Total Company Amount Northern Amount Sales Territory Southern % Amount 99 BO Req 1B > WYMI 1-a. 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. Reg 1A Reg 1B Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round your perce answers to 1 decimal place (ie. 0.1234 should be entered as 12.3).) Product Line Paks Tibs Northern Territory Amount Amount % Amount