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 $ 900,000 400,000 500,000 460,000 $ 40,000 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 $180,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $208,000 and $125,000 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 $120,000 and $280,000, respectively, in the Northern territory during June. Variable expenses are 24% of the selling price for Paks and 54% for Tibs. Cost records show that $52,800 of the Northern Territory's fixed expenses are traceable to Paks and $53,200 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. 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 $ 900,000 400,000 500,000 460,000 $ 40,000 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 $180,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $208,000 and $125,000 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 $120,000 and $280,000, respectively, in the Northern territory during June. Variable expenses are 24% of the selling price for Paks and 54% for Tibs. Cost records show that $52,800 of the Northern Territory's fixed expenses are traceable to Paks and $53,200 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.
Expert Answer:
Answer rating: 100% (QA)
1a Contribution Format Segmented Income Statements by Sales Territory Vulcan Company Contribution Fo... View the full answer
Posted Date:
Students also viewed these accounting questions
-
If the resultant force acting on the hook is F R = {? 200i + 800j + 150k} lb, determine the magnitude and coordinate direction angles of F. 30 F= 600 ib
-
Why is the percentage of debt for an electric utility higher than that for the typical manufacturing company?
-
A system consists of three particles, each of mass 5.00 g, located at the corners of an equilateral triangle with sides of 30.0 cm. (a) Calculate the potential energy of the system. (b) If the...
-
Eco-control has five procedural steps.Think of an important corporate environmental intervention (e.g. emission of waste-water). With reference to this corporate environmental intervention, explain...
-
Gordon Company records invoices at gross in its voucher system. From the following transaction, (a) Record in general journal form the appropriate entries at gross (b) Record the entries as if Gordon...
-
Shamrock Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$2,088,000 on March 1, HK$1,392,000 on June 1, and HK$2,508,000 on...
-
Your start-up internet services company needs cash, and you are preparing financial statements to apply for a short-term loan. A friend suggests that you treat as many expenses as possible as capital...
-
\(\mathrm{N}_{2}\) gas is confined in a cylinder of \(0.5 \mathrm{~m}\) diameter having a closely fitted frictionless piston. The weights of the piston and the block resting on it together equal...
-
What is a dynamical matrix? What is its use?
-
Richard was born on 5 April 1935. His wife, Patricia, was born on 7 October 1938. They were married in 1968. Their income for tax year 2023-24 is as follows: Calculate their income tax liabilities...
-
A manometer shows the reading as \(60 \mathrm{~cm}\) at \(30^{\circ} \mathrm{C}\) and \(1 \mathrm{~atm}\). Determine the absolute pressure, given that \(ho_{\mathrm{Hg}}=14.02 \mathrm{~g} /...
-
What is a mode shape? How is it computed?
-
Write a paper on Advantages and Disadvantages of a Multicultural Workforce
-
Suppose that the electrical potential at the point (x, y, z) is E(x, y, z) = x + y - 2z. What is the direction of the acceleration at the point (1,3,2)?
-
There are many ways to access the uncertainty in the general business environment. Two simple measures could be business activity (less will be sold in uncertain times) and levels of capital...
-
Most businesses will try to minimize risk through a combination of risk assessment, risk management and, where possible, transfer the risk to another party. For businesses, risks like theft, fire...
-
Use the data presented in 12.13. The probability of the monthly contribution from the new product exceeding 13 500 is: (a) 24.5% (b) 30.5% (c) 63.0% (d) 92.5% 12.13: A company expects to sell 1000...
Study smarter with the SolutionInn App