Shannon Company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin ratio, and net operating income are $960,000, 34%, and $19,200, respectively. The North Division's contribution margin and contribution margin ratio are $121,600 and 38%, respectively. The South Division's segment margin is $140,800. The company has $211,200 of common fixed expenses that cannot be traced to either division. Required: Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3).) Total Company North Division South Division Amount % Amount % Amount %
Shannon Company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin ratio, and net operating income are $960,000, 34%, and $19,200, respectively. The North Division's contribution margin and contribution margin ratio are $121,600 and 38%, respectively. The South Division's segment margin is $140,800. The company has $211,200 of common fixed expenses that cannot be traced to either division. Required: Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3).) Total Company North Division South Division Amount % Amount % Amount %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 7-7 (Algo) Segmented Income Statement [LO7-4]
Shannon Company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin
ratio, and net operating income are $960,000, 34%, and $19,200, respectively. The North Division's contribution margin and
contribution margin ratio are $121,600 and 38%, respectively. The South Division's segment margin is $140,800. The company has
$211,200 of common fixed expenses that cannot be traced to either division.
Required:
Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for
the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. (Round
your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3).)
Total Company
North Division
South Division
Amount
%
Amount
%
Amount
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd914a6ac-fda5-4b7a-9dcd-f98ae3f8e67c%2F522e6aff-6d32-4aee-994e-2bfd103b7817%2Favvnz5g_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 7-7 (Algo) Segmented Income Statement [LO7-4]
Shannon Company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin
ratio, and net operating income are $960,000, 34%, and $19,200, respectively. The North Division's contribution margin and
contribution margin ratio are $121,600 and 38%, respectively. The South Division's segment margin is $140,800. The company has
$211,200 of common fixed expenses that cannot be traced to either division.
Required:
Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for
the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. (Round
your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3).)
Total Company
North Division
South Division
Amount
%
Amount
%
Amount
%
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