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Problem 4-21 (Algo) Segment Reporting and Decision-Making [LO4-4] Vulcan Company's contribution format income statement for June is as follows: Management is disappointed with the company's

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Problem 4-21 (Algo) Segment Reporting and Decision-Making [LO4-4] 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 hove determined the following: a. The company is divided into two sales territories - Northern and Southem. The Northern Territory recorded $300,000 in sales and $150,000 in variable expenses duling June; the remaining sales and variable expenses were recorded in the Southem Territory. Fixed expenses of $123,000 and $100,000 are traceable to the Northem and Southern Teritories, respoctively. The rest of the fixed expenses are common to the two tectitories. b. The company is the exclusve distributor for two products - Paks and Tibs. \$ales of Paks and Tibs totaled $105,000 and $195.000. respectively, in the Northern territory during June. Variable expenses are 24% of the selang price for Paks and 64% for Tibs. Cost records show that $52,500 of the Northern Temitory's foed expenses are traceable to Paks and 540,950 fo Tibs, with the remainder common to the two products. Required: Prepare contribution format segmented income statements for the total company broken down between sales territories. 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. Note: Round the percentage answers to one decimal place (1.e,1234 should be entered as 12.3 ). a. Prepare contribution format segmented income statements for the total company broken down between sales territories. 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 Northern Territory broken down by product line. Note: Round the percentage answers to one decimal place (i.e .1234 should be entered as 12.3 )

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