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$\mathrm{.}1$

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.

$10$

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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$.1234$ should be entered as $12\mathrm{.}3).)$

$\backslash$table$[[,,,$Sales Territory$],[,$Total Company,Northern,Southern$],[,$Amount,$\%,$Amount,$\%,$Amount,$\%$