Management wants to improve profits and gathered the following data: Management wants to improve profits and gathered the following data:

a$.$ The company is divided into two sales territories$-$Northern and Southern. The Northern Territory recorded $$400,000$ in sales and

$$180,000$ in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory.

Fixed expenses of $$200,000$ and $$115,000$ 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$$Paks and Tibs. Sales of Paks and Tibs totaled $$170,000$ and $$230,000,$

respectively, in the Northern territory during June. Variable expenses are $22\%$ of the selling price for Paks and $62\%$ for Tibs. Cost

records show $$71,400$ of the Northern Territory's fixed expenses are traceable to Paks and $$50,600$ to Tibs, with the remainder

common to the two products.

Required:

$1-$a$.$ Prepare contribution format income statements for the total company segmented by sales territories.

$1-$b$.$ Prepare contribution format income statements for the Northern Territory segmented by product line.

Complete this question by entering your answers in the tabs below.

Required $1$ A

Required $1$B

Prepare contribution format income statements for the Northern Territory segmented by product line.

Note: Round the percentage answers to one decimal place $($i$.$e $.1234$ should be entered as $12\mathrm{.}3).$

a$.$ The company is divided into two sales territories$-$Northern and Southern. The Northern Territory recorded $$400,000$ in sales and

$$180,000$ in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory.

Fixed expenses of $$200,000$ and $$115,000$ 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$$Paks and Tibs. Sales of Paks and Tibs totaled $$170,000$ and $$230,000,$

respectively, in the Northern territory during June. Variable expenses are $22\%$ of the selling price for Paks and $62\%$ for Tibs. Cost

records show $$71,400$ of the Northern Territory's fixed expenses are traceable to Paks and $$50,600$ to Tibs, with the remainder

common to the two products.

Required:

$1-$a$.$ Prepare contribution format income statements for the total company segmented by sales territories.

$1-$b$.$ Prepare contribution format income statements for the Northern Territory segmented by product line.