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 - 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 $156,000 and $145,000 are traceable to the Northern and Southern Territories, respectively. The fest of the fixed expenses are common to the two territories. b. The company is the exclusive distributor for two products - Paks and Tibs. Sales of Paks and Tibs totaled.\$190,000 and $210,000, respectively, in the Northern territory during June. Variable expenses are 29% of the seling price for Paks and 69% for Tibs. Cost records show that $93,100 of the Northern Terntory's fixed expenses are traceable to Paks and $46,200 to Tibs, with the remainder common to the two products. Required: 1-a. Prepare contribusion format segmented income statements for the total company broken down between sales terrtories. 1.b. Prepare contribution format segmented income statements for the Northern Territory broken down bx product ine Complete this question by entering your answers in the tabs below. Prepare contribution format pegmented income statements for the total company broken down botween sales teritories: (Rtound the 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 - 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 $156,000 and $145,000 are traceable to the Northern and Southern Territories, respectively. The fest of the fixed expenses are common to the two territories. b. The company is the exclusive distributor for two products - Paks and Tibs. Sales of Paks and Tibs totaled.\$190,000 and $210,000, respectively, in the Northern territory during June. Variable expenses are 29% of the seling price for Paks and 69% for Tibs. Cost records show that $93,100 of the Northern Terntory's fixed expenses are traceable to Paks and $46,200 to Tibs, with the remainder common to the two products. Required: 1-a. Prepare contribusion format segmented income statements for the total company broken down between sales terrtories. 1.b. Prepare contribution format segmented income statements for the Northern Territory broken down bx product ine Complete this question by entering your answers in the tabs below. Prepare contribution format pegmented income statements for the total company broken down botween sales teritories: (Rtound the
