Shannon Company segments its income statement into 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 a segmented income statement for Shannon Company using the contribution format. For the company as a whole and for each division, 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). Total Company Amount % Amount North % Divisions Amount South %
Shannon Company segments its income statement into 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 a segmented income statement for Shannon Company using the contribution format. For the company as a whole and for each division, 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). Total Company Amount % Amount North % Divisions Amount South %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikaram Bhai
![Exercise 6-7 (Algo) Segmented Income Statement [LO6-4]
Shannon Company segments its income statement into 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 a segmented income statement for Shannon Company using the contribution format. For the company as a whole and for
each division, 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).
Total Company
Amount
%
Amount
North
%
Divisions
Amount
South
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27f682cb-8d5a-48f4-a157-698186a16311%2F116295e9-6af6-4958-bff9-d5821163b2a3%2Ffz0l3g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 6-7 (Algo) Segmented Income Statement [LO6-4]
Shannon Company segments its income statement into 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 a segmented income statement for Shannon Company using the contribution format. For the company as a whole and for
each division, 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).
Total Company
Amount
%
Amount
North
%
Divisions
Amount
South
%
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