The options for the drop down are:

Problem 6-21 Segment Reporting and Decision Making [LO6-4] Vulcan Company's contribution format income statement for June is given below: Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses $850,000 320,000 Contribution margin Fixed expenses 530,000 485,000 Net operating income $45,000 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 sales territories-Northern and Southern. The Northern Territory recorded $500,000 in sales and $285,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $185,000 and $94,500 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories