Problem 3 - fill in the blank Vulcan Company's contribution format income statement for June is given below: Vulcan Company Income Statement For the Month Ended June 30 Sales $750,000 Variable expenses 336,000 Contribution margin 414,000 Fixed expenses. 378,000 Net operating income $ 36,000 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: The company is divided into two products-N and S. The Product N recorded $300,000 in sales and $156,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern territory. Fixed expenses of $120,000 and $108,000 are traceable to the Product N and Product Srespectively. The rest of the fixed expenses are common to the two products and was allocated equally. Each territory has an average operating asset of $100,000 and with the used of these operating assets the company required a minimum rate of return on investment of 5% and 8% for Northern and Southern territory respectively. Product se Totale Complete the table using the data of Vulcan Company Product Ne Sales Variable expenses Contribution margin Traceable fixed expenses Segment margine Common fixed expenses Net operating income Lt Answer Determine the following using Vulcan Company data: Questions 12 Product N rate of return on investment. 22 Product S rate of return on investment. 2- Southern territory margin 32 Northern territory residual income 4 Southern territory turnover. % e % tt