Vulcan Company’s contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales $ 900,000 Variable expenses 400,000 Contribution margin 500,000 Fixed expenses 485,000 Net operating income $ 15,000 Management wants to improve profits and gathered the following data: * The company is divided into two sales territories—Northern and Southern. The Northern Territory recorded $400,000 in sales and $160,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $184,000 and $150,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories.
* The company is the exclusive distributor for two products—Paks and Tibs. Sales of Paks and Tibs totaled $290,000 and $110,000, respectively, in the Northern territory during June. Variable expenses are 29% of the selling price for Paks and 69% for Tibs. Cost records show $145,000 of the Northern Territory’s fixed expenses are traceable to Paks and $26,400 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. FYI: Please fill out the missing blank from the picture!.
Vulcan Company’s contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales $ 900,000 Variable expenses 400,000 Contribution margin 500,000 Fixed expenses 485,000 Net operating income $ 15,000 Management wants to improve profits and gathered the following data: * The company is divided into two sales territories—Northern and Southern. The Northern Territory recorded $400,000 in sales and $160,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $184,000 and $150,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories. * The company is the exclusive distributor for two products—Paks and Tibs. Sales of Paks and Tibs totaled $290,000 and $110,000, respectively, in the Northern territory during June. Variable expenses are 29% of the selling price for Paks and 69% for Tibs. Cost records show $145,000 of the Northern Territory’s fixed expenses are traceable to Paks and $26,400 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. FYI: Please fill out the missing blank from the picture!.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vulcan Company’s contribution format income statement for June is as follows:
Vulcan Company
Income Statement
For the Month Ended June 30
Sales $ 900,000
Variable expenses 400,000
Contribution margin 500,000
Fixed expenses 485,000
Net operating income $ 15,000
Management wants to improve profits and gathered the following data:
* The company is divided into two sales territories—Northern and Southern. The Northern Territory recorded $400,000 in sales and $160,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $184,000 and $150,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories.
* The company is the exclusive distributor for two products—Paks and Tibs. Sales of Paks and Tibs totaled $290,000 and $110,000, respectively, in the Northern territory during June. Variable expenses are 29% of the selling price for Paks and 69% for Tibs. Cost records show $145,000 of the Northern Territory’s fixed expenses are traceable to Paks and $26,400 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.
FYI: Please fill out the missing blank from the picture!.
Transcribed Image Text:6(1) i
-ntributio XI b Answered: Vulcan Company's X M Question 2 - Chapter 6(1) - C X
o.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launch Url=https%253A%252F%252Fnewconnect.mheducation.com%252F#/a
2
Req 1A
Complete this question by entering your answers in the tabs below.
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate comp
Req 1B
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Product line segment margin
Common fixed expenses
Sales territory segment margin
3
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).
E
$
4
Amount
$ 400,000 ✓
✓ 160,000✔
240,000
30000
R
Northern Territory
%
240,000
$ 240,000
er de
%
Answer is not complete.
T
100.0
40.0
60.0
Saved
60.0
< Req 1A
60.0 $ 60,900
< Prev
6
Amount
$ 290,000✔
84,100
205,900
145,000✔
Paks
ChatGPT
Y
2 of 3
&
7
Product Line
%
Amount
100.0 $ 110,000
Reg 18 >
www
100.0
100.0
U
75.900✔
34,100
26,400✔
$ 7,700
Next >
MINA
Tibs
8
x +
1
%
100.0
100.0
100.0
9
Help
O
P
Transcribed Image Text:contributio X b Answered: Vulcan Company's X M Question 2 - Chapter 6(1) - Co X
to.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launch Url=https%253A%252F%252Fnewconnect.mheducation.com%252F#/a
6(1) i
2
Req
Complete this question by entering your answers in the tabs below.
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate comp
Req 1B
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Territorial segment margin
Common fixed expenses
Net operating income
3
Prepare contribution format income statements for the total company segmented by sales territories.
Note: Round the percentage answers to one decimal place (i.e .1234 should be entered as 12.3).
Sales Territory
E
C
Total Company
Amount
$ 900,000
✓
400,000✔
✓ 500,000
✓ 334,000✔
✓ 166,000
✓
$
4
$ 166,000
R
%
100.0
44.4
55.6
%
5
55.6
55.6
Saved
Answer is not complete.
Req 1A
T
< Prev
Amount
$ 400,000
160,000
240,000
184,000✔
$ 56,000
Northern
G Search or type URL
6
ChatGPT
Y
60.0
2 of 3
%
Amount
100.0 $500,000✔
40.0 240,000✔
60.0
260,000
Req 1B >
&
7
Southern
150,000✔
$ 110,000
Next >
8
%
100.0
48.0
52.0
52.0
x +
+
9
Help
O
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