Problem 7-21 Segment Reporting and Decision-Making [LO7-4] Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales $ 900,000 Variable expenses 400.000 Contribution margin 500,000 Fixed 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 examinin sales and cost records, you have determined the following: a. The company is divided into two sales territories--Northern and Southem. The Northern Territory recorded $400,000 in sales an $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 ti 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 $200,000 and $200,00 in the Northern territory during June Variable expenses are 26% of the selling price for Paks and 74% for Tibs Cost records that $94.000 of the Northern Territory's fixed expenses are traceable to Paks and $42,000 to Tibs, with the remain commor the two products Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round your percentage answers to 1 decimal place (ie. 0.1234 should be entered as 12.3).) Northern Amount % Total Company Amount % $ 900.000 400.000 500.000 Sales Territory Southern % Amount 100.0 D 100. 0 0 100.0 100.0 D 100.0 1000 Variable expenses Contribution margin Traceable foxed expenses Territorial segment margin Common foxed expenses Net operating income 500,000 100.0 5 0 100.0 5 0 1000 $ 500,000 1000 Reg 1B > Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round your percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Paks Northern Territory Amount Product Line Tibs Amount Amount 0