Problem 7-21 (Algo) Segment Reporting and Decision-Making (L07-4) Vulcan Company's contribution format income statement for June is as follows: Valon Company Income statement For the Month de June 30 sales 5.000.000 Variable expenses 300.000 Contribution on 500,000 Fixed expenses 470,000 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 $216.000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory Fred expenses of $152.000 and 596.000 are traceable to the Northern and Southern Territorios, respectively. The rest of the fixed expenses are common to the two territories . The company is the exclusive distributor for two products --Paks and Tibs. Sales of Paks and Tibs totaled $100,000 and $300,000, respectively. In the Northern Territory during June Variable expenses are 15% of the selling price for Paks and 67 for Tiba Cost records show that $51,000 of the Northern Territory's fixed expenses are traceable to Paks and $72,000 to Tibs, with the remainder Common to the two broduct 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. Reg 1A Reg 13 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).) Sales Territory Total Company Northern Southern Amount Amount Amount + Reg 18 > Reg IA Reg 13 Prepare contribution format segmented Income statements for the Northern Territory broken down by product line. (Round the percentage answers to one decimal place le 1234 should be entered as 12:3) Product Line Tibs Northern Territory Amount Paks Amount Amount 56