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 400,000 Contribution margin 500,000 Pixed expenses 450,000 Net operating income $ 50,000 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 $500,000 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 $88,000 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 $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 $52,500 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. 1-6. 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 Req 18 Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round your percentage answers to 1 decimal place (.e. 0.1234 should be entered as 12.3).) Total Company Amount % Northern Amount Sales Territory Southern % Amount 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 Southern Total Company Amount Northern Amount Amount 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 $ 0 0.0 Reg 18 > Reg 1A Reg 1B Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round your percentage answers to 1 decimal place (.e. 0.1234 should be entered as 12.3).) Product Line Tibs Northern Territory Amount Paks Amount % Amount 0 0.0 O 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 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

No Nonsense Project Auditing A Practical Guide For The PMO

Authors: Lisa Nash

1st Edition

0993403522, 978-0993403521

Students also viewed these Accounting questions

Question

4. Identify the supernatural aid in The Wizard of Oz.

Answered: 1 week ago