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)Net operating income (loss)Traceable fixed expensesCommon fixed expensesSalesTerritorial segment marginContribution marginVariable expenses	$		$		$
(Click to select)Common fixed expensesVariable expensesContribution marginSalesNet operating income (loss)Traceable fixed expensesTerritorial segment margin
(Click to select)Traceable fixed expensesVariable expensesTerritorial segment marginSalesNet operating income (loss)Contribution marginCommon fixed expenses
(Click to select)Common fixed expensesSalesTerritorial segment marginVariable expensesTraceable fixed expensesNet operating income (loss)Contribution margin
(Click to select)Common fixed expensesContribution marginTerritorial segment marginNet operating income (loss)Variable expensesSalesTraceable fixed expenses			$		$
(Click to select)Contribution marginCommon fixed expensesTraceable fixed expensesNet operating income (loss)Territorial segment marginSalesVariable expenses
(Click to select)SalesNet operating income (loss)Variable expensesCommon fixed expensesTraceable fixed expensesTerritorial segment marginContribution margin	$

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)Traceable fixed expensesVariable expensesCommon fixed expensesProduct line segment marginContribution marginSalesSales territory segment margin	$		$		$
(Click to select)SalesProduct line segment marginContribution marginVariable expensesSales territory segment marginCommon fixed expensesTraceable fixed expenses
(Click to select)Traceable fixed expensesProduct line segment marginSales territory segment marginVariable expensesContribution marginCommon fixed expensesSales
(Click to select)SalesCommon fixed expensesTraceable fixed expensesProduct line segment marginSales territory segment marginVariable expensesContribution margin
(Click to select)Variable expensesProduct line segment marginCommon fixed expensesTraceable fixed expensesContribution marginSales territory segment marginSales			$		$
(Click to select)Contribution marginProduct line segment marginVariable expensesCommon fixed expensesTraceable fixed expensesSalesSales territory segment margin
(Click to select)Common fixed expensesVariable expensesTraceable fixed expensesProduct line segment marginContribution marginSales territory segment marginSales	$