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: Management is disappointed with the company's performance and is wondering what can be done

image text in transcribed
image text in transcribed
image text in transcribed
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 saies 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 $208,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $180.000 and $145,000 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 $160,000 and $240,000, respectively, in the Northern territory during June. Variable expenses are 28\% of the selling price for Poks and 68% for Tibs. Cost records show that $78,400 of the Northern Territory's fixed expenses are traceable to Paks and $55,200 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. 16. Prepare contribution format segmented income statements for the Northern Territory broken down by product line, equired: 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. Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round the percentage answers to one decimal place (i.e .1234 should be entered as 12.3).) 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. Prepare contribution fomat segmented income statements for the Northern Territory broken down by product line. (Round the percentage. answers to one decimal place (1.e. 1234 should be entered as 12.3).)

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

University Auditing In The Digital Era Challenges And Lessons For Higher Education Professionals And CAEs

Authors: Sezer Bozkus Kahyaoglu; Erman Coskun

1st Edition

0367553228, 9780367553227

More Books

Students also viewed these Accounting questions

Question

Describe ERP and how it can create efficiency within a business

Answered: 1 week ago