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 teritories - Northern and Southern. The Northern territory recorded $300,000 in sales and $156,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern. temitory. Fuxed expenses of $120,000 and $108,000 are traceable to the Northern and Southem territories, respectively. The rest of the fixed expenses are common to the fwo territories. b. The company is the exclusive distributor for two products-Paks and Tibs. Sales of Paks and Tibs totaled $50,000 and $250,000, respectively, in the Northein territory during June. Variable expenses are 22% of the selling price for Paks and 58% for Tibs. Cost reconds show that $30,000 of the Northern teritory'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 totai company broken down between sales territories. 1.b. Prepare contribution format segmented income statements for the Northern Territory broken down by product line. Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round the perce answers to one decimal place (i.e. 1234 should be entered as 12.3).). Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the perce to one decimal place (i.e. 1234 should be entered as 12.3).) 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 teritories - Northern and Southern. The Northern territory recorded $300,000 in sales and $156,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern. temitory. Fuxed expenses of $120,000 and $108,000 are traceable to the Northern and Southem territories, respectively. The rest of the fixed expenses are common to the fwo territories. b. The company is the exclusive distributor for two products-Paks and Tibs. Sales of Paks and Tibs totaled $50,000 and $250,000, respectively, in the Northein territory during June. Variable expenses are 22% of the selling price for Paks and 58% for Tibs. Cost reconds show that $30,000 of the Northern teritory'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 totai company broken down between sales territories. 1.b. Prepare contribution format segmented income statements for the Northern Territory broken down by product line. Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round the perce answers to one decimal place (i.e. 1234 should be entered as 12.3).). Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the perce to one decimal place (i.e. 1234 should be entered as 12.3).)
