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Homework answers / question archive / Problem: Vulcan Company's contribution format income statement for June is given below: Vulcan Company Income Statement For the Month Ended June 30 Sales $750,000 Variable expenses 336,000 Contribution margin 414,000 Fixed expenses 378,000 Net operating income $36,000 Management is disappointed with the company's performance and is wondering what can be done to improve profits
Problem:
Vulcan Company's contribution format income statement for June is given below:
| Vulcan Company Income Statement For the Month Ended June 30 |
|
| Sales | $750,000 |
| Variable expenses |
336,000 |
| Contribution margin | 414,000 |
| Fixed expenses |
378,000 |
| Net operating income |
$36,000 |
|
|
|
|
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 $300,000 in sales and $156,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern territory. Fixed expenses of $120,000 and $108,000 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 $50,000 and $250,000, respectively, in the Northern territory during June. Variable expenses are 22% of the selling price for Paks and 58% for Tibs. Cost records show that $30,000 of the Northern territory's fixed expenses are traceable to Paks and $40,000 to Tibs, with the remainder common to the two products. |
Question plus work done so far:
Prepare contribution format segmented income statements. (Round percentage computations to 1 decimal place. Omit the "$" and "%" signs in your response.)
| Sales Territory | ||||||
| Total Company | Northern | Southern | ||||
| Amount | % | Amount | % | Amount | % | |
| Sales | $750,000 | 100 | 300,000$ | $ 450,000 | ||
| Variable expenses |
336,000 |
|
156,000 |
|
180,000 |
|
| Contribution margin |
414,000 |
|
144,000 |
|
270,000 |
|
| Traceable fixed expenses |
228,000 |
|
120,000 |
|
108,000 |
|
| Sales territory segment margin | 186,000 |
$ 24,000 |
|
$ 162,000 |
|
|
| Common fixed expenses | 150,000 | |||||
| Net operating income |
$36,000 |
|
||||
|
|
||||||
| Product Line | ||||||
| Northern Territory | Paks | Tibs | ||||
| Amount | % | Amount | % | Amount | % | |
| Sales | $ 300,000 | 100 | $50,000 | $250,000 | ||
| Variable expenses |
156,000 |
|
11,000 |
22 |
145,000 |
58 |
| Contribution margin | 144,000 | 39,000 | 105,000 | |||
| Traceable fixed expenses |
70,000 |
|
30,000 |
|
40,000 |
|
| Product line segment margin | 74,000 |
$9,000 |
|
$65,000 |
|
|
| Common fixed expenses | 50,000 | |||||
| Sales territory segment margin |
$ 24,000 |
|
||||
My Question:
How do I get the percentage shown in each cell? the only percentage I got right so far are correct because they were given to me in the problem. I just dont know how to get the rest.
First person to explain how to get the % for the cells will receive life saver. Also the % cell for variable expenses for the second segment is not 80%.
please use this google drive link to download the answer file.
https://drive.google.com/file/d/1HQKaxx7OsNxjWV1wRwhJf0D0sfFN12ph/view?usp=sharing
note: if you have any trouble in viewing/downloading the answer from the given link, please use this below guide to understand the whole process
https://helpinhomework.org/blog/how-to-obtain-answer-through-googledrive-link
