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Correct the wrong answers please Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June
Correct the wrong answers please
Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses $900,000 408,000 492,000 455,000 $37,000 Net operating income 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 $204,000 and $120,000 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 $210,000 and $190,000, respectively, in the Northern territory during June. Variable expenses are 23% of the selling price for Paks and 63% for Tibs. Cost records show that $90,300 of the Northern Territory's fixed expenses are traceable to Paks and $34,200 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 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 Territory Total Company Southern Northern Amount Amount Amount $ 400,000 $ 500,000 $ 900,000 Sales 100.0 100.0 100.0 Variable expenses 408,000 45.3 168,000 42.0 240,000 48.0 Contribution margin 232,000 492,000 54.7 58.0 260,000 52.0 Traceable fixed 204,000 53.0 X 38.0 120,000 324,000 26.0 expenses Territorial segment margin Common fixed $ 28,000 $ 140,000 16.7 168,000 5.0 26.0 13.7 131,000 expenses $ 37,000 Net operating income 3.0 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 $ 400,000 $ 200,000(X $ 200,000X Sales 100.0 100.0 100.0 50,000 X 118,000 X 59.0 X Variable expenses 25.0 168,000 42.0 Contribution margin 232,000 150,000 41.0 58.0 75.0 82,000 Traceable fixed expenses 130,000X 32.5 X 45.0 X 15.0X 30,000 90,000 Product line segment margin $ 60,000 $ 52,000 102,000 30.0 26.0 25.5 Common fixed expenses 82,000 X 20.5(X $ 20,000 Sales territory segment margin 5.0 KReq 1A Req 1BStep by Step Solution
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