Vulcan Company's contribution format income statement for June is as follows:Vulcan CompanyIncome StatementFor the Month Ended June 30SalesVariable expensesContribution marginFixed expenses३900, 000400,000500,000475,000$ 25,000Net operating incomeManagement is disappointed with the company's performance and is wondering what can be done to improve profits. By examiningsales and cost records, you have determined the following:a. 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 $176,000 and $140,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixedexpenses 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 $140,000 and $260.000,respectively, in the Northern territory during June. Varlable expenses are 27% of the selling price for Paks and 47% for Tibs. Costrecords show that $67,200 of the Northern Territory's fixed expenses are traceable to Paks and $57,200 to Tibs, with the remaindercommon to the two products.Required:1-a. Prepare contribution format segmented income statements for the total company broken down between sales territories.1-b. Prepare contribution format segmented income statements for the Northern Territory broken down by product line,

Solution 1-a: Segmanted Income Statement - Vulcan Company Particulars Total Northern Southern…

Answered: Vulcan Company's contribution format…

Business

Accounting

Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Tncome

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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