Assignment 1 - Segment Reporting and Decision Making The most recent monthly contribution format income statement for Webbtech Company is given below: Webbtech Company Income Statement For the Month Ended May 31 .. $900,000 100.0% Revenues Variable expenses Contribution margin Fixed expenses Net operating income 408 492,000 54.7 s 27,000 3.0% 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 Central and Eastern. The Central Territory recorded $ 400,000 in Revenues and $ 208,000 in variable expenses during May. The remaining Revenues and variable expenses were recorded in the Eastern Territory. Fixed expenses of $ 160,000 and $ 130,000 are traceable to the Central and Eastern Territories, respectively. The rest of the fixed expenses are common to the two territories. b. The company has two divisions- Web Hosting and Web Analytics. Revenues for Hosting and Analytics totaled $ 100,000 and $ 300,000, respectively, in the Central Territory during May. Variable expenses are 25% of the selling price for Hosting and Analytics. Cost records show that $ 60,000 of the Central Territory's fixed expenses are traceable to Hosting and 54,000 to Analytics, with the remainder common to the two divisions. Required: A. Prepare contribution format segmented income statements, first showing the total company broken down between sales territories and then showing the Central Territory broken down by division line. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of Revenues. B. Prepare and submit as your response to this assignment, a memo to Webbtech's CEO, Wendy W Webb, including the statements required in point "A" above, detailing the following