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 $520,000, 60%, and $31,200, respectively. The North Division contribution margin and contribution margin ratio are $150,000 and 75%, respectively. The South Division's segment margin is $42,000. The company has $62,400 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. (Do not round your intermediate percentage answers and round your final percentage answers to 1 decimal place (i.e. .1234 should be entered as 12.3).) Divisions Total Company North South 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 $520,000, 60%, and $31,200, respectively. The North Division contribution margin and contribution margin ratio are $150,000 and 75%, respectively. The South Division's segment margin is $42,000. The company has $62,400 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. (Do not round your intermediate percentage answers and round your final percentage answers to 1 decimal place (i.e. .1234 should be entered as 12.3).) Divisions Total Company North South Amount % Amount % Amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 5-7 Segmented Income Statement [LO5-4]
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 $520,000, 60%, and $31,200, respectively. The North Division's
contribution margin and contribution margin ratio are $150,000 and 75%, respectively. The South Division's segment margin is $42,000. The company has $62,400 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. (Do not round your intermediate percentage answers and round your final percentage answers to 1 decimal
place (i.e. .1234 should be entered as 12.3).)
Divisions
Total Company
North
South
Amount
%
Amount
%
Amount
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8151a55-1f97-4293-9574-706e6f6ba5ac%2Fd1308fba-bba4-4029-a63e-cd6ea968453e%2Fbh7qbd_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 5-7 Segmented Income Statement [LO5-4]
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 $520,000, 60%, and $31,200, respectively. The North Division's
contribution margin and contribution margin ratio are $150,000 and 75%, respectively. The South Division's segment margin is $42,000. The company has $62,400 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. (Do not round your intermediate percentage answers and round your final percentage answers to 1 decimal
place (i.e. .1234 should be entered as 12.3).)
Divisions
Total Company
North
South
Amount
%
Amount
%
Amount
%
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