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Please Solve both parts 1A and 1-B Problem 6-21 Segment Reporting and Decision-Making [LO6-4) Vulcan Company's contribution format income statement for June is as follows:
Please Solve both parts 1A and 1-B
Problem 6-21 Segment Reporting and Decision-Making [LO6-4) Vulcan Company's contribution format income statement for June is as follows: Vulcan Conpany Income St tement For the Month Ended June 30 Sales Variable expenses 300:000 Contribution margin 500,000 Fixed expenses Net operating income $800,000 470,000 $ 30,000 Management is disappointed with the company's performance and is wondering what can be done to improwe 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 Northern Territory recorded $400,000 in sales and $216,000 In varlable expenses during June; the remaining sales and varlable expenses were recorded in the Southern Territory. Fixed expenses of $152,000 and $96,000 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 $100,000 and $300,000, respectively, in the Northern territory during June. Variable expenses are 15% of the selling rice for Paks and 67% for Tibs. Cost records show that $51,000 of the Northern Territory's fixed expenses are traceable to Paks and $72,000 to Tibs, with the remainder common to the two products. Required: -a. Prepare contribution format segmented Income statements for the total company broken down between sales 1-b. Prepare contribution fomat segmented income statements for the Northern Territory broken down by product line. Complete this question by entering your answers in the tabs below Req 1A Req 1B 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).) Show lessA Total Compa Amount Northern Req 1A Req 1BStep by Step Solution
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