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 Income Statement For the Month Ended June 30 Sales $ 900,000 Variable expenses 408,800 Contribution margin 492,000 Fixed expenses 480,000 Net operating income $ 12,000 Management is disappointed with the company's performance and is wondering what can be done to improve profits. By examini 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 a $208,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territor Fixed expenses of $180,000 and $145,000 are traceable to the Northern and Southern Territories, respectively. The rest of the expenses are common to the two territories, b. The company is the exclusive distributor for two products-Poks and Tibs. Sales of Poks and Tibs totaled $160,000 and $240,00 respectively, in the Northern territory during June. Variable expenses are 28% of the selling price for Paks and 68% for Tibs. Cos records show that $78,400 of the Northern Territory's fixed expenses are traceable to Paks and $55,200 to Tibs, with the remai common to the two products, Required: - Prepare contribution format segmented Income statements for the total company broken down between sales territories. 1-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. Req IA 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 (le 1234 should be entered as 12.3).) Total Company Amount Northem Amount Sales Territory Southern 94 Amount Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Prepare contribution format segmented Income statements for the Northern Territory broken down by product line. (Round the per answers to one decimal place (.e 1234 should be entered as 12.3).) Product Line Northern Territory Paka Tibs Amount % Amount Amount