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 $780,000, 46%, and $15,600, respectively. The North Division's contribution margin and contribution margin ratio are $140,000 and 50%, respectively. The South Division's segment margin is $90,000. The company has $140,400 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. Note: Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3). Sales Variable expenses Contribution margin Traceable fixed expenses Territorial segment margin Common fixed expenses. wwwwwwwwww Net operating income Y Total Company Amount % Amount North % Divisions Amount South %
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 $780,000, 46%, and $15,600, respectively. The North Division's contribution margin and contribution margin ratio are $140,000 and 50%, respectively. The South Division's segment margin is $90,000. The company has $140,400 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. Note: Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3). Sales Variable expenses Contribution margin Traceable fixed expenses Territorial segment margin Common fixed expenses. wwwwwwwwww Net operating income Y Total Company Amount % Amount North % Divisions Amount South %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $780,000, 46%, and $15,600, respectively. The North Division's contribution margin and
contribution margin ratio are $140,000 and 50%, respectively. The South Division's segment margin is $90,000. The company has
$140,400 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.
Note: Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3).
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Territorial segment margin
Common fixed expenses
Net operating income
Total Company
Amount
%
Amount
North
%
Divisions
Amount
South
%
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