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Vulcan Company's contribution format income statement for June as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales$750,000Variable expenses 336,000 Contribution margin414,000Fixed

Vulcan Company's contribution format income statement for June as follows:

Vulcan Company Income Statement For the Month Ended June 30

Sales$750,000Variable expenses336,000Contribution margin414,000Fixed expenses378,000Net Operating Income$36,000 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: a. The company is divided into two sales territories - Northern and Southern. The Norther territory recorded $300,000 in sales and $156,000 in variable expense during June; the remaining sales and variable expenses were recorded in the Southern territory. Fixed expenses of $120,000 and $108,000 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 $50,000 and $250,000, respectively, in the Northern territory during June. Variable expenses are 22% of the selling price for Paks and 58% for Tibs. Cost records shows that $30,000 of the Northern territory's fixed expenses are traceable to Paks and $40,000 to Tibs, with the remainder common to the two products.

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1A. Prepare contribution format segmented income statements first showing the total company's broken down between sales territories. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. Sales Territory % Sales Variable expenses Contribution margin Traceable fixed expenses Territorial segment margin Common fixed expenses* Net operating income Total Company Amount % [A] [H] [B] [C] [K] DI [L] [E] [M] [6] [N IS2EE22 Northern Amount [Q] [R] [S] IT [U [V] [W] [X] [Y] zi Southern Amount [AA] [BB] [CC] [DD] [EE] % [FF] (GG) [HH] [UJ] [KK) GI Question 1 Not complete Marked out of 1.00 P Flag question [A] Answer: Check Question 2 Not complete Marked out of 1.00 P Flag question [B] Answer: Check Question 3 Not complete Marked out of 1.00 P Flag question [C] Answer: Check Question 4 Not complete Marked out of 1.00 P Flag question [D] Answer: Check Question 5 Not complete Marked out of 1.00 P Flag question [E] Answer: Check Question 6 Not complete Marked out of 1.00 P Flag question [F] Answer: Check Question 7 Not complete Marked out of 1.00 P Flag question [G] Answer: Check Question 8 Not complete Marked out of 1.00 P Flag question [H] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 9 Not complete Marked out of 1.00 P Flag question [J] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 10 Not complete Marked out of 1.00 P Flag question [K] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 11 Not complete Marked out of 1.00 P Flag question [L] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 12 Not complete Marked out of 1.00 Flag question [M] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 13 Not complete Marked out of 1.00 P Flag question [N] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 14 Not complete Marked out of 1.00 P Flag question [P] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 15 Not complete Marked out of 1.00 P Flag question [Q] Answer: Check Question 16 Not complete Marked out of 1.00 P Flag question [R] Answer: Check Question 17 Not complete Marked out of 1.00 P Flag question [R] Answer: Check Question 18 Not complete Marked out of 1.00 P Flag question [S] Answer: Check Question 19 Not complete Marked out of 1.00 P Flag question [T] Answer: Check Question 20 Not complete Marked out of 1.00 P Flag question [U] Answer: Check Question 21 Not complete Marked out of 1.00 P Flag question [V] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 22 Not complete Marked out of 1.00 P Flag question [W] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 23 Not complete Marked out of 1.00 P Flag question [X] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 24 Not complete Marked out of 1.00 P Flag question [Y] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 25 Not complete Marked out of 1.00 P Flag question [Z] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 26 Not complete Marked out of 1.00 P Flag question [AA] Answer: Check Question 27 Not complete Marked out of 1.00 P Flag question [BB] Answer: Check Question 28 Not complete Marked out of 1.00 P Flag question [CC] Answer: Check Question 29 Not complete Marked out of 1.00 Flag question [DD] Answer: Check Question 30 Not complete Marked out of 1.00 P Flag question [EE] Answer: Check Question 31 Not complete Marked out of 1.00 Flag question [FF] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 32 Not complete Marked out of 1.00 P Flag question [GG] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 33 Not complete Marked out of 1.00 P Flag question [HH] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 34 Not complete Marked out of 1.00 P Flag question [JJ] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 35 Not complete Marked out of 1.00 P Flag question [KK] Express your answer in decimal ( 40% as 0.40 or .4) Answer: Check Question 36 Not yet answered Marked out of 1.00 P Flag question 1B. Prepare income statement showing the Northern territory broken down by product line. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. Paks Northern Territory Amount % Product Line Tibs % Amount Amount % Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses* Sales territory segment margin Question 37 Not complete Marked out of 1.00 P Flag question Variable expenses, Paks Answer: Check Question 38 Not complete Marked out of 1.00 P Flag question Variable expenses, Tibs Answer: Check Question 39 Not complete Marked out of 1.00 P Flag question Contribution margin, Paks Answer: Check Question 40 Not complete Marked out of 1.00 P Flag question Contribution margin, Tibs Answer: Check Question 41 Not complete Marked out of 1.00 P Flag question Product line segment margin, Paks Answer: Check Question 42 Not complete Marked out of 1.00 P Flag question Product line segment margin, Tibs Answer: Check

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