Vulcan Companys contribution format income statement for June is as follows:

Vulcan Company Income Statement For the Month Ended June 30
Sales	$	900,000
Variable expenses		408,000
Contribution margin		492,000
Fixed expenses		455,000
Net operating income	$	37,000

Management is disappointed with the companys performance and is wondering what can be done to improve profits. By examining sales and cost records, you have determined the following:

1. The company is divided into two sales territoriesNorthern and Southern. The Northern Territory recorded $400,000 in sales and $168,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $204,000 and $120,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories.

2. The company is the exclusive distributor for two productsPaks and Tibs. Sales of Paks and Tibs totaled $210,000 and $190,000, respectively, in the Northern territory during June. Variable expenses are 23% of the selling price for Paks and 63% for Tibs. Cost records show that $90,300 of the Northern Territorys fixed expenses are traceable to Paks and $34,200 to Tibs, with the remainder common to the two products.

Required: PLEASE FIX THE PERCENTAGE FOR ME!

1-a. Prepare contribution format segmented income statements for the total company broken down between sales territories.

			Sales Territory
	Total Company		Northern		Southern
	Amount	%	Amount	%	Amount	%
Sales	$900,000	100.0	$400,000	44.4	$500,000	55.6
Variable expenses	408,000	100.0	168,000	41.2	240,000	58.8
Contribution margin	492,000	0.0	232,000	3.2	260,000	(3.2)
Traceable fixed expenses	324,000	71.2	204,000	44.8	120,000	26.4
Territorial segment margin	168,000	(71.2)	$28,000	(41.6)	$140,000	(29.6)
Common fixed expenses	131,000	28.8
Net operating income	$37,000	(100.0)

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

			Product Line
	Northern Territory		Paks		Tibs
	Amount	%	Amount	%	Amount	%
Sales	$400,000	100.0	$210,000	100.0	$190,000	100.0
Variable expenses	168,000	42.0	48,300	23.0	119,700	71.3
Contribution margin	232,000	58.0	161,700	77.0	70,300	28.7
Traceable fixed expenses	124,500	31.1	90,300	43.0	34,200	16.8
Product line segment margin	107,500	26.9	$71,400	34.0	$36,100	11.9
Common fixed expenses	79,500	19.9
Sales territory segment margin	$28,000	7.0