(Solved): Vulcan Companys contribution format income statement for June is as follows: Vulcan Company Inc ...

Vulcan Company’s contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales $ 800,000 Variable expenses 308,000 Contribution margin 492,000 Fixed expenses 455,000 Net operating income $ 37,000 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: The company is the exclusive distributor for two products—Paks and Tibs. Sales of Paks and Tibs totaled $110,000 and $290,000, respectively, in the Northern territory during June. Variable expenses are 33% of the selling price for Paks and 73% for Tibs. Cost records show that $68,200 of the Northern Territory’s fixed expenses are traceable to Paks and $60,900 to Tibs, with the remainder common to the two products.