Problem $7\mathrm{.}21($Algo$)$ Segment Reporting and Decislon$-$MakIng $[$LO$7\mathrm{.}4]$

Vulcan Company's contribution format income statement for June is as follows:

Monsgement is disappointed with the company's performance and is wondering what can be done to improve profits. By examining

pales and cost records, you have determined the following:

o$.$ 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. Voriable expenses are $24\%$ of the selling price for Poks and $54\%$ for Tibs. Cost

records show that $$52,800$ of the Northern Territory's fixed expenses are trocesble to Paks and $$53,200$ to Tibs, with the

remainder common to the two products.

Required:

$1-$s$.$ Prepore contribution format segmented income statements for the totol company broken down between sales territories.

l$-$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.

Req $1A$

Prepare contribution format segmented income statements for the total company broken down between sales territories. $($Round the

percentage answers to one decimal place $($i$.$e $.1234$ should be entered as $12\mathrm{.}3).)$