Check my work Problem 7-21 Segment Reporting and Decision-Making [LO7-4] Vulcan Company's contribution format income statement for June is as follows: Sales Vulcan Company Income Statement For the Month Ended June 30 Variable expenses Contribution margin Fixed expenses Net operating income $ 800,000 308,000 492,000 465,000 $ 27,000 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 $212,000 in variable expenses during June, the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $140,000 and $92,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories.