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Vulcan Company's contribution format income statement for June is given below Company Income Statement For the Month Ended June 30 Sales Variable expenses $ 900,000

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Vulcan Company's contribution format income statement for June is given below Company Income Statement For the Month Ended June 30 Sales Variable expenses $ 900,000 408,000 Contribution margin Fixed expenses 492,000 465,000 Net operating income $ 27,000 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 drvided into two sales terntories-Northern and Southern. The Northern Territory recorded $400,000 in sales and $228,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $168,000 and $130,000 are traceable to the Northem 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 Tribs totaled $140 000 and $260,000, respectively, in the Northern temitory during June. Variable expenses are 31% of the selling price for Paks and 71% for Tibs Cost records show that S64 400 of the Northern Ternitory's fixed expenses are traceable to Paks and $52.000 to Tibs, with the remainder common to the two products Required: a Prepare contribution format segmented income statements for the total company broken down between sales territornes (Round the percentage answers to one decimal place (i.e -1234 should be entered as 12.3) Sales Territory

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