Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses $ 800,000 308,000 492,000 465,000 $27,000 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 Southern. The Northern Territory recorded $400,000 in sales and $212,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $140,000 and $92.000 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 $150,000 and $250,000, respectively, in the Northern territory during June. Variable expenses are 23% of the selling price for Paks and 71% for Tibs. Cost records show that $75,000 of the Northern Territory's fixed expenses are traceable to Paks and $57,500 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. Answer is complete but not entirely correct. Req 1A Req 181 Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round the percentage answers to one decimal place (1.e.1234 should be entered as 12.3).) Sales Variable expenses Contribution margin Traceable fixed expenses Territorial segment margin Common fixed expenses Net operating income Sales Territory Total Company Northern Southern Amount % Amount % Amount 3000 $ 800,000 O 100.0 $400,000 100.0 $400,000 100.0 308,000 38.5 224,000 56.0 84,000 21.0 492,000 61.5 176,000 44.0 316,000 79.0 264,000 33.0 X 160,000 40.0 104,000 26.0 228,000 28.5 $ 16.000 4.0 $ 212,000 53.0 216,000 27.0 $ 12,000 1.5 Ring 1A Req 1B > < Prev 7 of 7 Next > Complete this question by entering your answers in the tabs below. Req 1A Req 18 Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the percentage answers to one decimal place (i.e.1234 should be entered as 12.3).) Product Line Northern Territory Amount Paks Tibs Amount % Amount % Sales Variable expenses Contribution margin $400,000 100.0 $ 100,000 100.0 $300,000 100.0 2,240,000 56.0 26,000 26.0 198,000 66.0 (1.840,000) 44.0 74,000 74.0 102,000 34.0 Traceable fixed expenses 124,000 31.0 46,000 46.0 78,000 26.0 Product line segment margin (1,964,000) 13.0 $ 28,000 28.0 $ 24,000 8.0 Common fixed expenses 36,000 9.0 $ Sales territory segment margin 4.0 (2,000,000) +