Tami Tyler opened Tami's Creations, Incorporated, a small manufacturing company, at the beginning of the year. Getting the companyVulcan 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 $$300,000$ in sales and

$$150,000$ in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory.

Fixed expenses of $$123,000$ and $$100,000$ are traceable to the Northern and Southern Territories, respectively. The rest 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 $$105,000$ and $$195,000,$

respectively, in the Northern territory during June. Variable expenses are $24\%$ of the selling price for Paks and $64\%$ for Tibs. Cost

records show that $$52,500$ of the Northern Territory's fixed expenses are traceable to Paks and $$40,950$ to Tibs, with the remainder

common to the two products.

Requlred:

$1-$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.

Req$1A$

Prepare contribution format segmented income statements for the total company broken down between sales territories. $($Round the

percentage answers to one decimal place $($i$.$e $\mathrm{.}1234$ should be entered as $12\mathrm{.}3).)$

through its first quarter of operations placed a considerable strain on Ms$.$ Tyler's personal finances. The following income statement for

the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.

Ms$.$ Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for

a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and

argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.

At this point, Ms$.$ Tyler is manufacturing only one product$-$a swimsuit. Production and cost data relating to the swimsuit for the first

quarter follow:

Requlred:

Complete the following:

a$.$ Compute the unit product cost under absorption costing.

b$.$ What is the company's absorption costing net operating income $($loss$)$ for the quarter?

c$.$ Reconcile the variable and absorption costing net operating income $($loss$)$ figures.

During the second quarter of operations, the company again produced $31,700$ units but sold $34,700$ units. $($Assume no change in

total fixed costs.$)$

a$.$ What is the company's variable costing net operating income $($loss$)$ for the second quarter?

b$.$ What is the company's absorption costing net operating income $($loss$)$ for the second quarter?

c$.$ Reconcile the variable costing and absorption costing net operating incomes $($losses$)$ for the second quarter.

Complete this question by entering your answers in the tabs below.

Compute the unit product cost under absorption costing. $($Round your answer to $2$ decimal places.$)$