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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 Sales Variable expenses Contribution margin Fixed expenses Net operating income $960,000 400,000 560,000 495,000 $ 65,000 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 $176,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $192,000 and $117,600 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 $100,000 and $300,000, respectively, in the Northern territory during June. Variable expenses are 20% of the selling price for Paks and 52% for Tibs. Cost records show $40,000 of the Northern Territory's fixed expenses are traceable to Paks and $60,000 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 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 Variable expenses Contribution margin Traceable fixed expenses Sales Territory Total Company Amount Northern Southern % Amount % Amount % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 Territorial segment margin Common fixed expenses Net operating income $ 0 0.0 < Required 1A Required 1B >

Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses Net operating income $960,000 400,000 560,000 495,000 $ 65,000 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 $176,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $192,000 and $117,600 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 $100,000 and $300,000, respectively, in the Northern territory during June. Variable expenses are 20% of the selling price for Paks and 52% for Tibs. Cost records show $40,000 of the Northern Territory's fixed expenses are traceable to Paks and $60,000 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 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 Variable expenses Contribution margin Traceable fixed expenses Sales Territory Total Company Amount Northern Southern % Amount % Amount % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 Territorial segment margin Common fixed expenses Net operating income $ 0 0.0 < Required 1A Required 1B >

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 6P: Arctic Software Inc. has two product lines. The income statement for the year ended December 31...
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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 Sales Variable expenses Contribution margin Fixed expenses Net operating income $960,000 400,000 560,000 495,000 $ 65,000 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 $176,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $192,000 and $117,600 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 $100,000 and $300,000, respectively, in the Northern territory during June. Variable expenses are 20% of the selling price for Paks and 52% for Tibs. Cost records show $40,000 of the Northern Territory's fixed expenses are traceable to Paks and $60,000 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 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 Variable expenses Contribution margin Traceable fixed expenses Sales Territory Total Company Amount Northern Southern % Amount % Amount % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 Territorial segment margin Common fixed expenses Net operating income $ 0 0.0 < Required 1A Required 1B >
Transcribed Image Text:Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses Net operating income $960,000 400,000 560,000 495,000 $ 65,000 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 $176,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $192,000 and $117,600 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 $100,000 and $300,000, respectively, in the Northern territory during June. Variable expenses are 20% of the selling price for Paks and 52% for Tibs. Cost records show $40,000 of the Northern Territory's fixed expenses are traceable to Paks and $60,000 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 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 Variable expenses Contribution margin Traceable fixed expenses Sales Territory Total Company Amount Northern Southern % Amount % Amount % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 Territorial segment margin Common fixed expenses Net operating income $ 0 0.0 < Required 1A Required 1B >
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