Problem 7.21 (Algo) Segment Reporting and Decision-Making [LO7-4] Vulcan Company's contribution format income statement for June is as follows: 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 Southem. The Northern Territory recorded $400.000 in sales lind \$180,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory, Fixed expenses of $216.000 and $135,000 are traceoble to the Northern and Southern Territories, respectively. The rest of the fored expenses are common to the two territories. b. The compony is the exclusive distributor for two products - Paks and Tibs. Sales of Paks and Tibs totaled $200.000 and $200.000. respectively, in the Northern teritory during June. Variable expenses are 26% of the selling pice for Paks and 64% for Tibs. Cost records show that $92,000 of the Northern Temitory's fixed expenses are Iraceable to Paks and $42,000 to Tibs, with the remainder common to the two products. Required: 1-a. Prepare contribution format segmented income statements for the total company broken down between saies territories. 1.b. Prepare contribution format segmented income statements for the Northem Terfitory broken down by product line. Complete this auestion bv enterind vour answers in the tabs below. Required: 1-a. 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. Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round the pereentage answers to one decimal place ( Le .1234 should be entered as 12.3).) Required: -a. Prepare contribution format segmented income statements for the total company broken down between sales territories. 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. Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the percentage answers to one decimal place (l.e. 1234 should be entered as 12.3 ).)