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Spacely Company's contribution format income statement for February is as follows: Spacely Company Income Statement For the Month Ended February 28 Sales $1,300,000 Variable expenses

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Spacely Company's contribution format income statement for February is as follows: Spacely Company Income Statement For the Month Ended February 28 Sales $1,300,000 Variable expenses 736,000 Contribution margin 564,000 Fixed expenses 388,000 Net operating income S 176,000 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 sal es districtsDomestic and International. The Domestic District recorded $700.000 in sales and $353,000 in variable expenses during February, the remaining sales and variable expenses were recorded in the Intemational District. Fixed expenses of $152,000 and $190,000 are traceable to the Domestic and International Districts, respectively. The rest of the fixed expenses are common to the two districts. b. The company is the exclusive distributor for two productsCogs and Sprockets. Sales of Cogs and Sprockets totaled $200,000 and $500,000, respectively, in the Domestic District during February. Variable expenses are 44% of the selling price for Cogs and 53% for Sprockets. Cost records show that $58.000 of the Domestic District's fixed expenses are traceable to Cogs and $78,000 to Sprockets, with the remainder common to the two products. Required: 1-a. Prepare contribution format segmented income statements for the total company broken down between sales districts. 1-6. Prepare contribution format segmented income statements for the Domestic District broken down by product line

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