ulcan Company$$s contribution format income statement for June is as follows:

Vulcan Company

Income Statement

For the Month Ended June $30$

Sales $ $960,000$

Variable expenses $400,000$

Contribution margin $560,000$

Fixed expenses $495,000$

Net operating income $ $65,000$

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:

The company is divided into two sales territories$$Northern and Southern. The Northern Territory recorded $$400,000$ in sales and $$176,000$ in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $$192,000$ and $$117,600$ are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories.

The company is the exclusive distributor for two products$$Paks and Tibs. Sales of Paks and Tibs totaled $$100,000$ and $$300,000,$ respectively, in the Northern territory during June. Variable expenses are $20\%$ of the selling price for Paks and $52\%$ for Tibs. Cost records show that $$40,000$ of the Northern Territory$$s fixed expenses are traceable to Paks and $$60,000$ to Tibs, 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 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.

Prepare contribution format segmented income statements for the Northern Territory broken down by product line. $($Round the percentage

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