- Problem 7 21 Algo Segment Reporting And Decision Making Lo7 4 Vulcan Company S Contribution Format Income Statement 1 (30.96 KiB) Viewed 9 times
- Problem 7 21 Algo Segment Reporting And Decision Making Lo7 4 Vulcan Company S Contribution Format Income Statement 2 (27.13 KiB) Viewed 9 times
- Problem 7 21 Algo Segment Reporting And Decision Making Lo7 4 Vulcan Company S Contribution Format Income Statement 3 (19.55 KiB) Viewed 9 times
Problem 7-21 (Algo) Segment Reporting and Decision-Making [LO7-4] Vulcan
Company's contribution format income
statement for June is as follows: Vulcan
Company Income
Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 900,000 400,000 500,000 470,000 $ 30,000 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 $200,000 in variable expenses during June, the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $172,000 and $135,000 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 $200,000 and $200,000, respectively, in the Northern territory during June. Variable expenses are 26% of the selling price for Paks and 74% for Tibs. Cost records show that $94,000 of the Northern Territory's fixed expenses are traceable to Paks and $42,000 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.
Req 1A 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).) Total
Company Amount Reg 1A Northern Amount Sales Territory Req 1B > Southern Amount
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).) Northern Territory % Amount Amount Paks Product Line Amount Tibs %