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Problem 6 - 2 1 ( Algo ) Segment Reporting and Decision Making [ LO 6 - 4 ] Vulcan Company s contribution format income
Problem Algo Segment Reporting and Decision Making LO
Vulcan Companys contribution format income statement for June is as follows:
Vulcan Company
Income Statement
For the Month Ended June
Sales $
Variable expenses
Contribution margin
Fixed expenses
Net operating income $
Management wants to improve profits and gathered the following data:
The company is divided into two sales territoriesNorthern and Southern. The Northern Territory recorded $ in sales and $ in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $ and $ are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories.
The company is the exclusive distributor for two productsPaks and Tibs. Sales of Paks and Tibs totaled $ and $ respectively, in the Northern territory during June. Variable expenses are of the selling price for Paks and for Tibs. Cost records show $ of the Northern Territorys fixed expenses are traceable to Paks and $ to Tibs, with the remainder common to the two products.
Required:
a Prepare contribution format income statements for the total company segmented by sales territories.
b Prepare contribution format income statements for the Northern Territory segmented by product line.Required:
a Prepare contribution format income statements for the total company segmented by sales territories.
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.
Prepare contribution format income statements for the total company segmented by sales territories.
Note: Round the percentage answers to one decimal place ie should be entered as
tableSales TerritoryTotal Company,Northern,SouthernAmount,Amount,Amount,
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