Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

vuican companys contribution format income statement for june is as Tollows: Vulcan Company Income Statement For the Month Ended June 30 Sales $ 900,eee Variable

image text in transcribed
image text in transcribed
image text in transcribed
vuican companys contribution format income statement for june is as Tollows: Vulcan Company Income Statement For the Month Ended June 30 Sales $ 900,eee Variable expenses 408,000 Contribution margin 492,000 Fixed expenses 455,600 $ 37,000 Net operating income 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 Southem. The Northern Territory recorded $400,000 in sales and $168.000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory Fixed expenses of $204,000 and $120,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories b. The company is the exclusive distributor for two products-Paks and Tibs. Sales of Paks and Tibs totaled $210,000 and $190,000, respectively, in the Northern territory during June. Variable expenses are 23% of the selling price for Paks and 63% for Tbs. Cost records show that $90,300 of the Northern Territory's fixed expenses are traceable to Paks and $34.200 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. Req 1A Reg 13 Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round your percentage answers to 1 decimal place (.e. 0.1234 should be entered as 12.3).) Total Company Amount % Northern Amount Sales Territory Southern Amount % % 0 0.0 0 0.0 0 00 0 0.05 0 0.05 0 $ 0 0.0 Reg 18> Complete this question by entering your answers in the tabs below. Req 1A Afa Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round your percentage answers to 1 decimal place (ie. 0.1234 should be entered as 12.3).) Product Line Northern Territory Amount % Tibs Paks Amount 96 Amount 96 0 0.0 0 0.0 0 0.0 0 0.05 0 0.0 $ 0.0 $ 0 0.0 Reg 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Analytics Strategies And Methods For Detection And Prevention

Authors: Delena D. Spann

1st Edition

111823068X, 978-1118230688

More Books

Students also viewed these Accounting questions