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

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

$$200,000$ in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory.

Fixed expenses of $$156,000$ and $$145,000$ 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 $$190,000$ and $$210,000,$

respectively, in the Northern territory during June. Variable expenses are $29\%$ of the selling price for Paks and $69\%$ for Tibs. Cost

records show that $$93,100$ of the Northern Territory's fixed expenses are traceable to Paks and $$46,200$ to Tibs, with the remainder

common to the two products.

Required:

$1-$a$.$ Prepare contribution format segmented income statements for the total company broken down between sales territories.

$1-$b$.$ Prepare contribution format segmented income statements for the Northern Territory broken down by product line.

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