The Savage .22/.410 combo gun is intended for small game. The lower barrel is not intended for slugs, and thus is not really regulated for the sights. (.410 slugs are notoriously inaccurate to begin with, and not very effective on target, either).
More important than the slug performance is the way the barrel patterns with birdshot. If it is centering the pattern that far off at 12 yards, it should be returned to Savage or taken to a gunsmith who knows how to re-pattern shotguns.
Sight the iron sights in for the .22, and plan on using the .410 barrel with shot. There will not be enough sight adjustment to correct the p.o.i. for the lower barrel.
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