PROBLEM 6-21Secment 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 $750,000 Variable expenses 336,000 Contribution margin 414.000 Fixed expenses 378,000 Net operating income $ 36,000 Management is disappointed with the company's performance and is wondering what can be done to improve profits. By estamining tales and cost records, you have determined the following: a. The company is divided into two sales territories-Northern and Southern The Northern territory recorded $300,000 in sales and 8156,000 in variable expenses during Jude the remaining tales and variable expenses were recorded in the Southern territory. Fixed expenses of $120,000 and $108,000 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 Tiba. Sales of Paks and Tibe totaled $50,000 and $250,000, respectively, in the Northern territory during June. Variable expenses are 22% of the selling price for Paks and 58% for Tibu. Cont records show that $30,000 of the Northern Territory's fed expenses are traceable to Paks and $40,000 to Tibe, with the remainder common to the two products Required: 1. Prepare contribution format segmented income statement first showing the total company brom down between sales territories and then showing the Northern Territory broken down by product line. In addition, for the company as a whole and for each comment show each item on the segmented income statements as a percent of sales 2. Look at the statement you have prepared thowing the total company segmented by sales territory: What insights revealed by this statement thould be mentioned to management? 3. Look at the statement you have prepared thowing the Northern Territory' Segmented by product lines. What insight wated by this statement thould be mentioned to management