Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Please show work, thank you (2a) Vulcan Company's contribution format income statement for June is as follows: Management is disappointed with the company's performance and

image text in transcribedimage text in transcribedimage text in transcribed

Please show work, thank you (2a)

Vulcan Company's contribution format income statement for June is as follows: 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 Northem Territory recorded $500,000 in sales and $285,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $185,000 and $94,500 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 $200,000 and $300,000, respectively, in the Northern territory during June. Variable expenses are 27% of the selling price for Paks and 77% for Tibs. Cost records show that $94,000 of the Northem Territory's fixed expenses are traceable to Paks and $60,000 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. 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).) Complete this question by entering your answers in the tabs below. Prepare contribution format segmented Income statements for the Northern Teritory broken down by product line. (Round the answers to one decimal place (I.e.1234 should be entered as 12.3).)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ethics Management Auditing And Developing The Ethical Content Of Organizations

Authors: S.P. Kaptein

1st Edition

0792350960, 978-0792350965

More Books

Students explore these related Accounting questions