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 June 30 Sales $ 900,000 Variable

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 June 30 Sales $ 900,000 Variable expenses 403,000 Contribution margin 492,000 Fixed expenses 455,000 Net operating income $ 37,600 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 soles territories--Northern 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 b. The company is the exclusive distributor for two products --Paks 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 Territory's fixed expenses are traceable to Paks and $34,200 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 territores 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 1B !!! Nex! e peuvey, une URGER CRUY y uite. V. Aceasure Insur www records show that $90,300 of the Northern Territory's fixed expenses are traceable to Paks and $34,200 to Tibs, with the remainde common to the two products Required: 1-a. Prepare contribution format segmented income statements for the total company broken down between sales territories. 1-5. Prepare contribution format segmented income statements for the Northern Territory broken down by product line. Complete this question by entering your answers in the tabs below. ok Req 1A Req 1B nt Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round the percentage answers to one decimal place (.e.1234 should be entered as 12.3).) ences Total Company Amount w Northern Amount Sales Territory Southern % Amount 0 00 0 00 0 0.0 Sales Variable expenses Contribution margin Traceable fixed expenses Territorial segment margin Common fixed expenses Net operating income 0 00$ 0 00 $ 0 0.0 $ 0 00 Req 10 > CHERY JUVE CARE CEVI ITUAL records show that $90,300 of the Northern Territory's fixed expenses are traceable to Paks and $34,200 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. Ook Req 1A Reg 18 int Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the percentage answers to one decimal place (i.e.1234 should be entered as 12.3).) ences Product Line Northern Territory Amount Tbs Paks Amount Amount 0 00 0 00 0 00 Sales Variable expenses Contribution margin fraceable fixed expenses Product line segment margin Common foxed expenses Sales territory segment margin 0 00 $ 0 0.00 $ 0 00 $ 00

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

Fraud Examination And Prevention

Authors: W. Steve Albrecht, Chad O. Albrecht

1st Edition

053872689X, 978-0538726894

More Books

Students also viewed these Accounting questions

Question

8. Explain the 5P framework for sports marketing.

Answered: 1 week ago