D E F G H 1 Vulcan Company's contribution format income statement for June is as follows: 2 3 Vulcan Company 4 Income Statement 5 For the Month Ended June 30 6 Sales 7 Variable expenses 8 Contribution margin 9 Fixed expenses 10 Net operating income 11 12 $900,000 400,000 500,000 450,000 $50,000 The company is divided into two sales territories-Northern and Southern. The Northern Territory recorded $500,000 in sales and $200,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $245,000 and $88,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories. The company is the exclusive distributor for two products-Paks and Tibs. Sales of Paks and Tibs totaled $250,000 and $250,000, respectively, in the Northern territory during June. Variable expenses are 21% of the selling price for Paks and 59% for Tibs. Cost records show that $102,500 of the Northern Territory's fixed expenses are Sales Variable expenses Contribution margin Traceable fixed expenses Territorial segment margin Common fixed expenses Net operating income traceable to Paks and $52,500 to Tibs, with the remainder common to the two products. J K L M N Sales Territory Total Company Amount % Northern Amount % Southern Amount % 13 14 1) Prepare contribution format segmented income statements for the total company broken down between sales territories. 15 2) Prepare contribution format segmented income statements for the Northern Territory broken down by product line. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses Sales territory segment margin + Product Line Northern Territory Amount % Paks Amount % Tibs Amount %