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Vulcan Company's contribution format income statement for June is as follows Vulcan Company Income Statement For the Month Ended June 30 $988,000 488,880 492,000 Sales

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Vulcan Company's contribution format income statement for June is as follows Vulcan Company Income Statement For the Month Ended June 30 $988,000 488,880 492,000 Sales Variable expenses Contribution margin Fixed expenses ook 465,00e int Net operating income 27,000 ences 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 $168,000 in variable expenses during June, the remaining sales and variable expenses were recorded in the Southern Territory Fixed expenses of $212,000 and $130,000 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 $200,000 and $200,000, respectively, in the Northern territory during June. Variable expenses are 25% of the seling price for Paks and 59% for Tibs. Cost records show that $90,000 of the Northern Territory's fixed expenses are traceable to Paks and $40,000 to Tibs, with the remainder common to the two products Required: 1.a. Prepare contribution format segmented income statements for the total company broken down between sales territories 1-b. Prepare contribution format segmented income statements for the Northern Territory broken down by product line Complete this question by entering your answers in the tabs bel ow. Req 1A Req 1B Prepare contribution format segmented income statements for the total company broken down between sales your percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Sales Territory Total Company Southern Northern Amount Amount mou Sales 100.0$ 400.000 1000 S 500,000 $ 900,000 100.0 208,000 Variable expenses 45.3 408.000 52.0 180,000 36.0 Contribution margin 54.7 192,000 492,000 48.0 320,000 64.0 160,000 Traceable fixed expenses 290000 32.2 40.0 130,000 26.0 38.0 225 Sl 32.000 80 S 190,000 erritorial segment margin 202,000 175,000 19.4 Common foxed expenses 27.000 3.1 operating income Req 1B Req 1A Req 1B Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round y answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Product Line Tibs Paks Northern Territory Amount Amount Amount S 400,000 $ 260,000 $140,000 Sales 184,600 228,000 43,400 ariable expenses 0.0 0.0 0.0 172,000 96,600 75,400 Contribution margin 116,400 52,000 64,400 Traceable fixed expenses 55,600 0.0 $ 32.200 0.0 23,400 0.0 Product line segment margin 51.600 Common fixed expenses 0.0 S4000 Sales territory segment margin K Req 1A

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