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please explain this step by step with formulas Vulcan Company's contribution format income statement for June is as follows. Management is disoppointed with the compony's
please explain this step by step with formulas
Vulcan Company's contribution format income statement for June is as follows. Management is disoppointed with the compony's performance and is wondeding 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 teminies -Northern and Southern. The Northem Teritory recorded $400.000 in sales and $168,000 in variable expenses during June, the remaining sales and variable expenses were recorded in the Southern Temtory Fixed expenses or $212,000 and $130,000 are traceable to the Northern and Southern Territorles, respectively. The rest of the fixed expenses are common to the fwo territorles: b. The company is the exclistve distributor for two products - Paks and Tibs. 5 ales of Paks and Tibs totaled $200,000 and $200,000. respectively, in the Northern teritory during June. Variable expenses are 25% of the selling price for Paks and 59% for Tibs. Cost records show that $90,000 of the Northern Teritory's fived expenses are traceable to Paks and $40.000 to Tibs, with the remainder common to the two products Required: 1-a. Prepate contribution format segmented income statements for the total company broken down between sales territones. 1.6. Prepare contribution format segmented income statements for the Northern Terntory broken down by product line. Complete this question by entering your answers in the tabs below. Prepare contnbution formet segmented income statements for the total company broken down between sales temtonies. (Round the percentage answens to one iseomal place (6e 1254 chould 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 territones-Northern and Southern. The Northern Territory recorded $400.000 in sales and $168,000 in varable expenses during June; the remaining sales and varable expenses were recorded in the Southern Territory. Fixed expenses of $212,000 and $130,000 are traceable to the Northern and Southern Terrtories, 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 $200,000 and $200,000, respectively, in the Northern terrtory during June. Varlable expenses are 25% of the selling price for Paks and 599 for Tibs. Cost records show that $90,000 of the Northern Territory's fixed expenses are traceable to Paks and $40,000 to Tibs, with the remainder common to the two products. Requlred: 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 ine. Complete this question by entering your answers in the tabs below. Prepare contribution format segmented income statements for the Northern Ternitory broken down by product line. (Round the percentage answers to one decimal place (i.e .1234 should be entered as 12.3).) Step by Step Solution
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