Vulcan Companys contribution format income statement for June is given below:

Vulcan Company Income Statement For the Month Ended June 30
Sales	$	900,000
Variable expenses		300,000
Contribution margin		600,000
Fixed expenses		495,000
Net operating income	$	105,000

Management is disappointed with the companys 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 territoriesNorthern and Southern. The Northern Territory recorded $400,000 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 $156,000 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 productsPaks and Tibs. Sales of Paks and Tibs totaled $190,000 and $210,000, respectively, in the Northern territory during June. Variable expenses are 29% of the selling price for Paks and 69% for Tibs. Cost records show that $93,100 of the Northern Territorys fixed expenses are traceable to Paks and $46,200 to Tibs, with the remainder common to the two products.

Required:

1a.

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))

			Sales Territory
	Total Company		Northern		Southern
	Amount	%	Amount	%	Amount	%
Sales	$900,000	100.0	$400,000	100.0	$400,000	100.0
Variable expenses	300,000		200,000
Contribution margin	600,000	100.0	200,000	100.0	400,000	100.0
Traceable fixed expenses	301,000		156,000		145,000
Territorial segment margin	299,000	100.0	$44,000	100.0	$255,000	100.0
Common fixed expenses	194,000
Net operating income	$105,000	100.0

1b.

Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the percentage answers to one decimal place (i.e .1234 should be entered as 12.3))

			Product Line
	Northern Territory		Paks		Tibs
	Amount	%	Amount	%	Amount	%
Sales	$400,000
Variable expenses
Contribution margin	400,000	0.0	0	0.0	0	0.0
Traceable fixed expenses
Product line segment margin	400,000	0.0	$0	0.0	$0	0.0
Common fixed expenses
Sales territory segment margin	$400,000	0.0