7.21 please

PROBLEM 7-21 Segment Reporting and Decision-Making LO7-4 Valcan Company's contribution format income statement for June is as follows: Management is disappointed with the company's performance and is wondering what can be denet improve profits. By examining sales and cost records, you have determined the following: 2. The company is divided into two sales territories - Northern and Southern. The Northern tertim recorded $300.000 in sales and $156.000 in variable expenses during June; the remaining sab and variable expenses were recorded in the Southern territory. Fixed expenses of $120,000 at $108,000 are craceable to the Northern and Southern territories, respectively. The reat of the fiat expenses are common to the two territories. b. The company is the eaclusive distributor for two products-Paks and Tibs. Sales of Pals ax Tibs totaled $0,000 and $250,000, respectively, in the Northern territory during June. Vacutt expenses are 22% of the selling price for Paks and 58% for Tibs. Cost records show that 5200x of the Northern territory's fixed expenses are traceable to Paks and $40,000 to Tibs, sit in remainder common to the fwo products. Required: 1. Prepare contribution format segmented income statements first showing the total compary tnit down between sales territories and then showing the Northern territory broken down by produst is In addition, for the company as a whole and for each segment, show cach item on the segpors income statements as a percent of sales. 2. Look at the statemeat you have prepared showing the total company segmented by sales semisty What insights revealed by this statement should be mentioned to management? 3. Look at the statement you have prepared showing the Northern territory segmented PROeLEM 7-22 Variable Costing income Statements; Income Reconciliation LO7-1, L07-2, ,07-1 Denton Comipany manufactures and sells a single product. Cost data for the product are given