Vulcan Company's contribution format income statement for June is given below Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 900,000 400,000 500,000 460,000 S 40,000 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 $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. Variable expenses are 24% of the selling price for Paks and 54% for Tibs. Cost records show that $52,800 of the Northen Territory's fixed expenses are traceable to Paks and $53,200 to Tibs, with the remainder common to the two products. Required 1a. Prepare contribution format segmented income statements for the total company broken down between sales territories. (Do not round your intermediate percentage answers and round your final percentage answers to 1 decimal place (i.e. 1234 should be entered as 12.3).) Sales Territory Total Company Southern nt% |Amount % Amount $400,000 180,000 0.0 220,000 $208,000 125,000 Sales Variable expenses Traceable fixed expenses Sales territory segment Common fixed expenses Net operating income $608,000 Contribution margin 608000 00 220,000 0.0 83,000 0.0 608,000 ,.0 0: 320.000 049 .0 608,000 0.0 $83,000 0.0 $608,000 0.0