Vulcan Companys contribution format income statement for June is as follows:
| Vulcan Company Income Statement For the Month Ended June 30 |
| Sales | $ | 800,000 |
| Variable expenses | | 308,000 |
| Contribution margin | | 492,000 |
| Fixed expenses | | 465,000 |
| Net operating income | $ | 27,000 |
| |
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:
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The company is divided into two sales territoriesNorthern 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.
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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 23% of the selling price for Paks and 71% for Tibs. Cost records show that $75,000 of the Northern Territorys 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.
Chapter 4 Homework Saved 3 Vulcan Company's contribution format income statement for June is as follows: 8.34 points Vulcan Company Income Statement For the Month Ended June 30 Sales $ 800,000 Variable expenses 308,000 Contribution margin 492,000 Fixed expenses 465,000 Net operating income 27,000 Skipped eBook 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: Print References a. The company is divided into two sales territoriesNorthern 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 productsPaks 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. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round your percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Sales Territory Total Company Amount % Northern Amount Southern Amount % % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 0 0.0 Chapter 4 Homework Saved m. Vulcan Company's contribution format income statement for June is as follows: 8.34 points Vulcan Company Income Statement For the Month Ended June 30 Sales $ 800,000 Variable expenses 308,000 Contribution margin 492,000 Fixed expenses 465,000 Net operating income 27,000 Skipped eBook 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: Print References a. The company is divided into two sales territoriesNorthern 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 productsPaks 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. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B ontribution formato di matamote for the Northritoluline Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round your percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Product Line Paks Tibs Northern Territory Amount % Amount % Amoun % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 $ 0 0.0
