Vulcan Campany ncome Statement For the Month Ended June 30 900.000 408.000 Variable expenses Fixed expenses Net operating income 455,000 37000 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 $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 Tibs. 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 1a. Prepare contribution format segmented income statements for the total company broken down between sales territories. (Do not round your intermediate percentage answers and round your final percentage answers to 1 decimal place (i.e. .1234 should be entered as 12.3).) Total Company Amount Amount 400.000 168,000 232,000 204,000 1000 500.000 240.000 260000 120.000 01 1 40.000 100- s 900000 408.000 492000 324000 168.000 131.000 7.000 ariable expenses ontribution margin raceable fixed expenses 45.3 54.7 36.1 18.6 $ 42.0 58.0 51 0 480 52.0 240 28 0 ommon fixed expenses operating income 1b. Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Do not round your intermediate percentage answers and round your final percentage answers to 1 decimal place (i.e. .1234 should be entered as 12.3).) Northen Paks 48 300 161,700 90,300 71.400 23 77.0 43 340 63 37 18 19.0 ariable expenses 42 0 0,300 34.200 36,100 on margin 32.000 58.0 raceable fixed expenses 58 DI 232,000 79,500 s 152500 ommon fixed expenses s territory segment margin 58.D