Problem 7-21 (Algo) Segment Reporting and Decision-Making (L07-4) Vulcan Company's contribution format income statement for June is as follows: Vulcan 1 | | | Tor the Month Inded June 30 Variable expenses Contribution Fixed xp Not operating Income $850,000 320,000 530.000 495.000 45,000 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 - Northem and Southern The Northern Territory recorded $500,000 in sales and $285,000 in variable expenses during June, the remaining sales and variable expenses were recorded in the Southern Territory Fixed expenses of $185,000 and $94 500 are traceable to the Northern and Southern Territorios, respectively. The rest of the feed expenses are common to the two territories 5. The company is the exclusive distributor for two products --Pakes and Toba Soles of Pakifand Tibe totaled $200,000 and $300,000, respectively, in the Northern territory during June Variable expenses are 27% of the seling price for Pakcs and 77% for Tibs, Cost records show that $94,000 of the Northern Territory's fixed expenses are traceable to Poks and $60,000 to Tibs, with the remainder common to the two products, Required: T-aPrepare contribution format segmented income statements for the total company broken down between sales territories 1.5. Prepare contribution format segmented income statements for the Northern Territory broken down by product line Complete this question by entering your answers in the tabs below. Required: 1-a. Prepare contribution format segmented income statements for the total company broken down between sales territories 1-5. Prepare contribution format segmented income statements for the Northern Territory broken down by product line. Complete this question by entering your answers in the tabs below. Req1A Reg 18 Prepare contribution format segmented Income statements for the total company broken down between sales territories (Round the percentage answers to one decimal place ( 1234 should be entered on 12.3).) Sales Territory Total Company Northern Southern Amount Amount Amount 0.0 0 0.0 0 00 005 0 00$ 0 0.0 S 0 00 Roq 18 > Required: 1-3. 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. Reg LA Reg 18 Prepare contribution format segmented Income statements for the Northern Territory broken down by product line. (Round the percenta answers to one decimal place (1234 should be entered as 12,3).) Product Line Northern Territory Paks Amount Amount Amount Tibe 0 00 0 0.0 0 0.0 00$ o 0.05 0 010 s 0 0.0 Reg 1A
