The most recent monthly contribution format income statement for Reston Company is given below:

Reston Company Income Statement For the Month Ended May 31
Sales	$	800,000	100.0	%
Variable expenses		308,000	38.5
Contribution margin		492,000	61.5
Fixed expenses		480,000	60.0
Net operating income	$	12,000	1.5	%

Management is disappointed with the companys 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 territoriesCentral and Eastern. The Central Territory recorded $400,000 in sales and $224,000 in variable expenses during May. The remaining sales and variable expenses were recorded in the Eastern Territory. Fixed expenses of $160,000 and $104,000 are traceable to the Central and Eastern Territories, respectively. The rest of the fixed expenses are common to the two territories.
b.	The company is the exclusive distributor for two productsAwls and Pows. Sales of Awls and Pows totaled $100,000 and $300,000, respectively, in the Central Territory during May. Variable expenses are 26% of the selling price for Awls and 66% for Pows. Cost records show that $46,000 of the Central Territorys fixed expenses are traceable to Awls and $78,000 to Pows, with the remainder common to the two products.

Required:

1a.

Prepare contribution format segmented income statements for the total company broken down between sales territories. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round your percentage answers to 1 decimal place. Omit the "$" and "%" signs in your response.)

			Sales Territory
	Total Company		Central		Eastern
	Amount	%	Amount	%	Amount	%
(Click to select)SalesContribution marginCommon fixed expensesNet operating income (loss)Territorial segment marginTraceable fixed expensesVariable expenses	$		$		$
(Click to select)Contribution marginSalesNet operating income (loss)Territorial segment marginVariable expensesCommon fixed expensesTraceable fixed expenses
(Click to select)Common fixed expensesNet operating income (loss)Contribution marginVariable expensesSalesTerritorial segment marginTraceable fixed expenses
(Click to select)Net operating income (loss)SalesVariable expensesCommon fixed expensesTraceable fixed expensesContribution marginTerritorial segment margin
(Click to select)SalesNet operating income (loss)Traceable fixed expensesContribution marginTerritorial segment marginVariable expensesCommon fixed expenses			$		$
(Click to select)Net operating income (loss)Territorial segment marginVariable expensesTraceable fixed expensesSalesContribution marginCommon fixed expenses
(Click to select)Common fixed expensesContribution marginSalesTraceable fixed expensesTerritorial segment marginNet operating income (loss)Variable expenses	$

1b.

Prepare contribution format segmented income statements for the Central Territory broken down by product line. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round your percentage answers to 1 decimal place. Omit the "$" and "%" signs in your response.)

			Product Line
	Central Territory		Awls		Pows
	Amount	%	Amount	%	Amount	%
(Click to select)Product line segment marginVariable expensesSalesSales territory segment marginTraceable fixed expensesCommon fixed expensesContribution margin	$		$		$
(Click to select)Common fixed expensesSales territory segment marginContribution marginTraceable fixed expensesProduct line segment marginSalesVariable expenses
(Click to select)Contribution marginVariable expensesTraceable fixed expensesCommon fixed expensesSalesSales territory segment marginProduct line segment margin
(Click to select)Contribution marginSalesSales territory segment marginCommon fixed expensesVariable expensesProduct line segment marginTraceable fixed expenses
(Click to select)Variable expensesSales territory segment marginTraceable fixed expensesProduct line segment marginContribution marginCommon fixed expensesSales			$		$
(Click to select)Variable expensesContribution marginSalesSales territory segment marginCommon fixed expensesTraceable fixed expensesProduct line segment margin
(Click to select)Variable expensesTraceable fixed expensesProduct line segment marginSalesCommon fixed expensesSales territory segment marginContribution margin	$