Vulcan Company's contribution format income statement for June is as follows: Vulcan Company: Income Statement For...
Fantastic news! We've Found the answer you've been seeking!
Question:
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 $ 900,000 400,000 500,000 470,000 $ 30,000 Management is disappointed with the company's 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 territories-Northern 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 $172,000 and $135,000 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 $200,000 and $200,000. respectively, in the Northern territory during June. Variable expenses are 26% of the selling price for Paks and 74% for Tibs. Cost records show that $94,000 of the Northern Territory's fixed expenses are traceable to Paks and $42,000 to Tibs, with the remainder common 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. Complete this question by entering your answers in the tabs below. Req 1A Req 18 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).) Total Company Sales Territory Northern Southern 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 $ 900,000 400,000 500,000 470,000 $ 30,000 Management is disappointed with the company's 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 territories-Northern 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 $172,000 and $135,000 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 $200,000 and $200,000. respectively, in the Northern territory during June. Variable expenses are 26% of the selling price for Paks and 74% for Tibs. Cost records show that $94,000 of the Northern Territory's fixed expenses are traceable to Paks and $42,000 to Tibs, with the remainder common 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. Complete this question by entering your answers in the tabs below. Req 1A Req 18 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).) Total Company Sales Territory Northern Southern
Expert Answer:
Answer rating: 100% (QA)
Vulcan Company Income Statement by Territory For the Month Ended June 30 1 Total Sales Northern Terr... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Maria's refrigerator stopped working and she called Polo Refrigerator Services for a home visit and repair. Polo Refrigerator Services is a company that offers refrigerator repair services. The Polo...
-
Assume you are offered a lease for a car with $227 monthly payments for 36 months after a $2,540 up front (down) payment. The alternative is that you can buy the car for $31,000 and make a $3,200...
-
How do state guarantee funds for life insurance companies compare with deposit insurance for depository institutions?
-
In Problem use a numerical integration command on a graphing calculator to find the indicated probability or percentage. The mean height of a hay crop is 40 inches with a standard deviation of 3...
-
The circuit in Figure P7.48 is a hybrid- \(\pi\) equivalent circuit including the resistance \(r_{b}\). (a) Derive the expression for the voltage gain transfer function \(A_{v}(s)=V_{o}(s) /...
-
Farr Co. elects to use the percentage-of-sales basis in 2014 to record bad debt expense. It estimates that 2% of net credit sales will become uncollectible. Sales revenues are $800,000 for 2014,...
-
Frigid Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1, 2016, and operated at 100% of capacity during the first month. The following data summarize the...
-
11. Suppose your boss makes a statement that American children study more hours per week than Brazilian children. You think American children study less. You do some research and find that a sample...
-
What are the two primary factors that affect a loans interest rate?
-
Identify a new fintech startup and describe its business model. What new services or features does it provide to its customers? How does it earn its revenue? How does it differ from traditional...
-
What is the purpose of equity financing?
-
What are the primary features of a term loan? Of a bond?
-
What are debt ratings?
-
Refer to the 4-month data below of telephone bill, apply the high-low method to answer the question. If the company uses 380 minutes in May, how much will the total bill be? Minutes January 460...
-
A condenser (heat exchanger) brings 1 kg/s water flow at 10 kPa quality 95% to saturated liquid at 10 kPa, as shown in Fig. P4.91. The cooling is done by lake water at 20C that returns to the lake at...
-
On 1 January 2024, a company receives gross debenture interest of 1,600 from another UK company and pays net debenture interest of 8,640 to individuals. Explain the corporation tax treatment of each...
-
Visit Transparency Internationals website and check to see how the CPI Index for countries listed in Exhibits 5.4 and 5.6 has changed. After searching TIs databank, explain why the changes have...
-
Identify the accounting periods relating to the following periods of account: (a) year to 30 November 2023 (b) 1 October 2022 to 31 July 2023 (c) 1 January 2024 to 31 January 2024 (d) 33 months to 31...
Study smarter with the SolutionInn App