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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
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 territoriesNorthern and Southern. The Northern Territory recorded $ in sales and
$ in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory.
Fixed expenses of $ and $ 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 productsPaks and Tibs. Sales of Paks and Tibs totaled $ and $
respectively, in the Northern territory during June. Variable expenses are of the selling price for Paks and for Tibs. Cost
records show that $ of the Northern Territory's fixed expenses are traceable to Paks and $ to Tibs, with the remainder
common to the two products.
Required:
a Prepare contribution format segmented income statements for the total company broken down between sales territories.
b Prepare contribution format segmented income statements for the Northern Territory broken down by product line.
Complete this question by entering your answers in the tabs below.
Req
Req B
Prepare contribution format segmented income statements for the total company broken down between sales territories. Round the
percentage answers to one decimal place ie should be entered as
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