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

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.

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

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.