Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 900,000 400,000 500,000 450,000 $ 50,000 Management wants to improve profits and gathered the following data: a. The company is divided into two sales territories-Northern and Southern. The Northern Territory recorded $400,000 in sales and $180,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $160,000 and $150,000 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 $150,000 and $250,000, respectively, in the Northern territory during June. Variable expenses are 30% of the selling price for Paks and 54% for Tibs. Cost records show $75,000 of the Northern Territory's fixed expenses are traceable to Paks and $57,500 to Tibs, with the remainder common to the two products. Required: 1-a. Prepare contribution format income statements for the total company segmented by sales territories. 1-b. Prepare contribution format income statements for the Northern Territory segmented by product line. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Prepare contribution format income statements for the Northern Territory segmented by product line. Note: 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 % 0 0.0 0 0.0 0 0.0 0.0 $ 0 0.0 $ $ 0.0 0.0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Vulcan Company
Income Statement
For the Month Ended June 30
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
$ 900,000
400,000
500,000
450,000
$ 50,000
Management wants to improve profits and gathered the following data:
a. The company is divided into two sales territories-Northern and Southern. The Northern Territory recorded $400,000 in sales and
$180,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory.
Fixed expenses of $160,000 and $150,000 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 $150,000 and $250,000,
respectively, in the Northern territory during June. Variable expenses are 30% of the selling price for Paks and 54% for Tibs. Cost
records show $75,000 of the Northern Territory's fixed expenses are traceable to Paks and $57,500 to Tibs, with the remainder
common to the two products.
Required:
1-a. Prepare contribution format income statements for the total company segmented by sales territories.
1-b. Prepare contribution format income statements for the Northern Territory segmented by product line.
Complete this question by entering your answers in the tabs below.
Required 1A Required 1B
Prepare contribution format income statements for the Northern Territory segmented by product line.
Note: 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
%
0
0.0
0
0.0
0
0.0
0.0 $
0
0.0 $
$
0.0
0.0
Transcribed Image Text:Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 900,000 400,000 500,000 450,000 $ 50,000 Management wants to improve profits and gathered the following data: a. The company is divided into two sales territories-Northern and Southern. The Northern Territory recorded $400,000 in sales and $180,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $160,000 and $150,000 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 $150,000 and $250,000, respectively, in the Northern territory during June. Variable expenses are 30% of the selling price for Paks and 54% for Tibs. Cost records show $75,000 of the Northern Territory's fixed expenses are traceable to Paks and $57,500 to Tibs, with the remainder common to the two products. Required: 1-a. Prepare contribution format income statements for the total company segmented by sales territories. 1-b. Prepare contribution format income statements for the Northern Territory segmented by product line. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Prepare contribution format income statements for the Northern Territory segmented by product line. Note: 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 % 0 0.0 0 0.0 0 0.0 0.0 $ 0 0.0 $ $ 0.0 0.0
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education