Problem $6-21($Algo$)$ Segment Reporting and Decision Making $[$LO$6-4]$

Vulcan Company's contribution format income statement for June is as follows:

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 $$300,000$ in sales and $$150,000$ in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $$123,000$ and $$100,000$ 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 $$105,000$ and $$195,000,$ respectively, in the Northern territory during June. Variable expenses are $24\%$ of the selling price for Paks and $64\%$ for Tibs. Cost records show $$52,500$ of the Northern Territory's fixed expenses are traceable to Paks and $$40,950$ 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 $1A$

Required $1B$

Prepare contribution format income statements for the total company segmented by sales territories.

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

$\backslash$table$[[,,,,,$itory,$],[,$Total C$,,,,$Sol,$],[,$Amount,$\%,$Amount,$\%,$Amount,$\%$