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

Management wants to improve profits and gathered the following data:

a$.$ The company is divided into two sales territories$-$Northern and Southern. The Northern Territory recorded $$400,000$ in sales

and $$200,000$ in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern

Territory. Fixed expenses of $$156,000$ and $$145,000$ 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 $$190,000$ and

$$210,000,$ respectively, in the Northern territory during June. Variable expenses are $29\%$ of the selling price for Paks and $69\%$

for Tibs. Cost records show $$93,100$ of the Northern Territory's fixed expenses are traceable to Paks and $$46,200$ to Tibs, with

the remainder common to the two products.

Required:

$1-$a$.$ Prepare contribution format income statements for the total company segmented by sales territories.

$1-$b$.$ Prepare contribution format income statements for the Northern Territory segmented by product line.

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