Problem 6-21 (Algo) Segment Reporting and Decision-Making [L06-4] Vulcan Company's contribution format income statement for June is as follows: Vulcan Company The Statement For the Month Ended Dune 30 Sales $ 900,000 Variable expenses 400,000 Contribution margin 500,000 Fixed expenses 460,000 Net operating income $40,000 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 Northern Territory recorded $400.000 in sales and S180.000 in variable expenses during June, the remaining sales and variable expenses were recorded in the Southern Territory Fixed expenses of $208.000 and $125,000 are traceable to the Northern and Southern Territories. Iespectively. 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 $120,000 and $280.000 respectively in the Northern territory during June Vanable expenses are 24 of the selling price for Paks and 54% for Tibs Cost records show that $52 800 of the Northern Territory's fixed expenses are traceable to Poks and $53.200 to Tbs, with the remainder common to the two products Required: 1a. Prepare contribution format segmente come statements for the total company broken down between sales territories 1-5. Prepare contribution format segmented income statements for the Northern Territory broken down by product line