Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statenent For the Month inded June 10 Sales Variable expenses Contribution margin $ 900,000 408,000 Fixed expenses Net operating income 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-Northem and Southern. The Northern Territory recorded $400,000 in sales and $168,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $204,000 and $120.000 are traceable to the Northern and Southern Territories, respectively. The rest of the foxed 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 $210,000 and $190,000, respectively, in the Northern territory during June. Variable expenses are 23% of the selling price for Paks and 63% for Tibs. Cost records show that S90,300 of the Northern Territory's fixed expenses are tracesble to Paks and $34,200 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.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
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Vulcan Company's contribution format income statement for June is es follows:
Vulcan Company
Income Statenent
For the Month Ended June 30
Sales
Variable expenses
Contribution margin
Fixed expenses
$ 9e0, e00
488, 00e
492, 800
455,000
Net operating income
$ 37,000
Management is disoppointed with the company's performance and is wondering what con be done to improve profits. By examining
soles 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
$168,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory.
Fixed expenses of $204,000 and $120,000 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 $210,000 and $190,000,
respectively, in the Northern territory during June. Variable expenses are 23% of the selling price for Paks and 63% for Tibs. Cost
records show that $90,300 of the Northern Territory's fixed expenses are trecesble to Paks and $34,200 to Tibs, with the remainder
common to the two products.
Required:
1-8. 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.
Complete this question by entering your answers in the tabs below.
Reg 14
Req 18
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 12.3).)
Salee Territory
Total Company
Northern
Southern
Amount
Amount
Amount
< Req 1A
Req 1B >
Transcribed Image Text:Vulcan Company's contribution format income statement for June is es follows: Vulcan Company Income Statenent For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses $ 9e0, e00 488, 00e 492, 800 455,000 Net operating income $ 37,000 Management is disoppointed with the company's performance and is wondering what con be done to improve profits. By examining soles 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 $168,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $204,000 and $120,000 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 $210,000 and $190,000, respectively, in the Northern territory during June. Variable expenses are 23% of the selling price for Paks and 63% for Tibs. Cost records show that $90,300 of the Northern Territory's fixed expenses are trecesble to Paks and $34,200 to Tibs, with the remainder common to the two products. Required: 1-8. 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. Complete this question by entering your answers in the tabs below. Reg 14 Req 18 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 12.3).) Salee Territory Total Company Northern Southern Amount Amount Amount < Req 1A Req 1B >
Vulcan Company's contribution format income statement for June is as follows:
Vulcan Company
Income Statenent
For the Month Ended June 30
$ 980, 000
Sales
Variable expenses
488, e00
Contribution margin
Fixed expenses
492,00
455,000
Net operating income
$ 37,000
Management is disoppointed with the company's performance and is wondering what con be done to improve profits. By examining
soles 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
$168,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory.
Fixed expenses of $204,000 and $120,000 are troceable 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-Poks and Tibs. Sales of Poks and Tibs totaled $210,000 and $190,000,
respectively, in the Northern territory during June. Variable expenses are 23% of the selling price for Paks and 63% for Tibs. Cost
records show that $90,300 of the Northern Territory's fixed expenses are trecesble to Paks and $34,200 to Tibs, with the remainder
common to the two products.
Required:
1-8. Prepare contribution format segmented income statements for the total company broken down between sales teritories.
1-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
Reg 10
Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the percentage
answers to one decimal place (i.e .1234 should be entered as 12.3).)
Product Line
Northern Territory
Pake
Tibe
Amount
Amount
Amount
< Req 1A
Req 18 >
Transcribed Image Text:Vulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statenent For the Month Ended June 30 $ 980, 000 Sales Variable expenses 488, e00 Contribution margin Fixed expenses 492,00 455,000 Net operating income $ 37,000 Management is disoppointed with the company's performance and is wondering what con be done to improve profits. By examining soles 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 $168,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $204,000 and $120,000 are troceable 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-Poks and Tibs. Sales of Poks and Tibs totaled $210,000 and $190,000, respectively, in the Northern territory during June. Variable expenses are 23% of the selling price for Paks and 63% for Tibs. Cost records show that $90,300 of the Northern Territory's fixed expenses are trecesble to Paks and $34,200 to Tibs, with the remainder common to the two products. Required: 1-8. Prepare contribution format segmented income statements for the total company broken down between sales teritories. 1-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 Reg 10 Prepare contribution format segmented income statements for the Northern Territory broken down by product line. (Round the percentage answers to one decimal place (i.e .1234 should be entered as 12.3).) Product Line Northern Territory Pake Tibe Amount Amount Amount < Req 1A Req 18 >
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