Product line segment margin. Common fixed expenses* Sales territory segment margin $ =$ Problem 6-21 - In Class - Name: 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 $300,000 in sales and $156,000 in variable expenses during June; the remaining sales and variable expenses were reconded in the Southern territory. Fued expenses of $120,000 and $108,000 are traceable to the Northern and Scuthern territuries, respectively. The rest of the fised expenses are common to the two territories. b. The company is the exclusive distributor for two products-Paks and Tbs. Sales of Paks and Tibs totalod $0,000 and $250.000, respectively, in the Northern territory during June. Variable expenses are 22% of the selling price for Paks and 58$ for Thes. Cost reeords show that $30,000 of the Northern territory's tixed expenses are traceable to Paks and $40,000 to 7ibs, with the remainder cormmon to the two products. Required: 1. Prepare contribution format segmented income statements finst thowing the total company broken down berwen sales ternitories and then showing the Northern territory broken down by product lise. In additioe, fir the company as a whole and for each segment, ahow each item on the sefmented income statements as a pereent of cales. 2. Look at the statemen you have prepared showing the fotal company segmented by sales territory. What inights reveald by this statement should be mentioned to maragement? 3. Look at the statement you have prepared showing the Northern territory segmented by product linex. What insiehts rercaled by this statement should be mentioned to management