Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses.. $750,000 336,000 414,000 378,000 Net operating income..530,000 Fixed expenses. 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 a. territory recorded $300,000 in sales and $156,000 in variable expenses during June; the nses of $120,000 and $108,000 are traceable to the Northern and Southern territo- The company is the exclusive distributor for two products-Paks and Tibs. Sales of Paks 22% of the selling price for Paks and 58% for Tib Cost records show that $30,000 of the Northern territory's fixed expenses are traceable to remaining sales and variable expenses were recorded in the Southern territory. Fix ries, respectively. The rest of the Fixed expenses are common to the two territories. and Tibs totaled $50,000 and. $250,000, respectively, in the Northern territory d b. June. Variable expenses are Paksand $40,000 to Tibs, with the remainder common to the two products. Required: repare contribution format segmented income statements first showing the total company Ken down between sales territories and then showing the Northern territory broken down by product line. In addition, for the company as a whole and for each segment, show each item bro on the segmented income statements as a percent ory. What insights revealed by this statement should be mentioned to management? det lines. What insights revealed by this statement should be mentioned to management? of sales. k at the statement you have prepared showing the total company segmented by sales terri