Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Vulcan Company's contribution format Income statement for June is as follows: Vulcan Company Income Statement For the Month Ended Oune 30 Sales $900,000 Variable expenses

image text in transcribed
image text in transcribed
image text in transcribed
Vulcan Company's contribution format Income statement for June is as follows: Vulcan Company Income Statement For the Month Ended Oune 30 Sales $900,000 Variable expenses 400,00 Contribution margin See,200 Fixed expenses 450,000 Net operating income $ 50,00 Management is disappointed with the company's performance and is wondering what can be done to improve pronts By examining sales and cost records, you have determined the following 3. The company is divided into two sales territories-Northern and Southern The Northern Territory recorded 5500,000 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 $245,000 and 588,000 are traceable to the Northem 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 $250,000 and $250,000 respectively, in the Northern territory during June. Variable expenses are 21% of the selling price for Paks and 59% for Tibs Cost records show that $102,500 of the Northern Territory's fixed expenses are traceable to Paks and $52500 to Tibs, with the remainder common to the two products Reg 1A Req 1B Prepare contribution format segmented income statements for the total company broken down between sales territories: (Round the percentage answers to one decimal place (le 1234 should be entered as 12.3).) Total Company Amount Northem Amount Sales Territory Southern Amount 0 00 0 0.0 0.0 0 0 00S 00S 0 0.0 S 0 0.0 FA Reg 13 > Checy WON Reg 1A Reg 1B Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the percentate answers to one decimal place le 1234 should be entered as 12:3).) Paks Northern Territory Amount Product Line Tibs Amunt Amount 0 0 0 00 0.0 0.0 0 0 0 00 00S 0,0 $ S 0 0.0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting The Basis For Business Decisions

Authors: Robert F. Meigs, Mary A. Meigs, Mark Bettner, Ray Whittington

10th Edition

0070433607, 978-0070433601

More Books

Students also viewed these Accounting questions

Question

Know the components of a position description

Answered: 1 week ago

Question

Explain the value of a true open-door policy

Answered: 1 week ago