Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 800,000 308,000 492,000 480,000 $ 12,000 es 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 territories-Northern and Southern. The Northern Territory recorded $400,000 in sales and $224,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory Fixed expenses of $160,000 and $104,000 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 $100,000 and $300,000 respectively, in the Northern territory during June. Variable expenses are 26% of the selling price for Paks and 66% for Tibs. Cost records show that $46,000 of the Northern Territory's fixed expenses are traceable to Paks and $78,000 to Tibs, with the remainder common to the two products. Req 1A Reg 1B Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the answers to one decimal place (i.e .1234 should be entered as 12.3).) Product Line Tibs Northern Territory Amount % $ 400,000 100.0 Paks Amount Amount % % 100.0 100.0 Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin 400,000 100.0 0 100.0 0 100.0 400,000 100.0 $ 0 100.0 $ 0 100.0 Common fixed expenses Sales territory segment margin $ 400,000 100.0 Reg 1A