Problem 7-21 (Algo) Segment Reporting and Decision-Making L07-4) Vulcan Company's contribution format income statement for June is as follows vulcan Company Income Statement For the Month Ended Sune 30 Sales $900,000 Variable expenses 400,000 Contribution margin So,000 Fived expenses 470.000 Net operating income $ 30,000 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 $200,000 in variable expenses during June, the remaining sales and variable expenses were recorded in the Southern Territory Fixed expenses of $172,000 and $135.000 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 Tios Sales of Poks and Tibs totaled $200.000 and $200.000, respectively, in the Northem territory during Junte Variable expenses are 26% of the selling price for Paks and 74% for Tibs Cost records show that $94.000 of the Northern Territory's fixed expenses are traceable to Paks and $42,000 to Tibs, with the remainder common to the two products Required: La Prepare contribution format segmented income statements for the total company broken down between sales territories 1-b. Prepare contribution format segmented income statements for the Northern Territory broken down by product line Prepare contribution format segmented Income statements for the total company broken down between sales territories. (Round the percentage answers to one decimal place (L. 1234 should be entered as 123).) Sales Variable expenses Contribution margin Traceable find expenses Territorial segment margin Common fed expenses Nut operating income loops Total Company Northam Amount Amount 900.000 1000$ 400.000 400,000 444 180 000 3 500 000 556 220.000 3510003 39.03 216.000 3 149.000 166 $ 4000 119.000 1323 330.000 34 Sales Territory Southern Amount % 100,0 $ 500.000 100 0 4503 220,000 1408 550 200,000 560 5403 135,000 270 10 $ 145 000 290 Reg 10 > Reg 1A Reg 1B Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the percenta answers to one decimal place (.e.1234 should be entered as 12.3).) % > Sales Variable expenses Contribution margin Traceable ford expenses Product line segment margin Common fbxed expenses Sales territory segment margin Northern Territory Paks Amount Amount $ 400.000 1000S 200.000 180,000 450 52.000 220,000 55.0 148.000 134,000 3 335 92.000 86 000 21.5 $ 56,000 82.000 20583 S 4,000 1.0 Product Line Tibs %4 Amount 100.0 S 200.000 260 128.000 740 72.000 460 42.000 28.0 $ 30,000 1000 6403 360 210 150 >> >