Vulcan Companys contribution format income statement for June is as follows:Vulcan CompanyIncome StatementFor 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 wants to improve profits and gathered the following data:$*$ The company is divided into two sales territoriesNorthern and Southern. The Northern Territory recorded $$400,000$ in sales and $$208,000$ in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $$164,000$ and $$125,000$ are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories.$*$ The company is the exclusive distributor for two productsPaks and Tibs. Sales of Paks and Tibs totaled $$150,000$ and $$250,000,$ respectively, in the Northern territory during June. Variable expenses are $22\%$ of the selling price for Paks and $70\%$ for Tibs. Cost records show $$67,500$ of the Northern Territorys fixed expenses are traceable to Paks and $$60,000$ 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$\mathrm{.}1-$b$.$ Prepare contribution format income statements for the Northern Territory segmented by product line.