Shannon Company segments its income statement into North and South Divisions. The company's overall sales, contribution margin ratio, and net operating income are $1,080,000, 42%, and $21,600, respectively. The North Division's contribution margin and contribution margin ratio are $165,600 and 46%, respectively. The South Division's segment margin is $187,200. The company has $280,800 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). Divisionsc
Shannon Company segments its income statement into North and South Divisions. The company's overall sales, contribution margin ratio, and net operating income are $1,080,000, 42%, and $21,600, respectively. The North Division's contribution margin and contribution margin ratio are $165,600 and 46%, respectively. The South Division's segment margin is $187,200. The company has $280,800 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). Divisionsc
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 North and South Divisions. The company's overall sales, contribution margin
ratio, and net operating income are $1,080,000, 42%, and $21,600, respectively. The North Division's contribution margin and
contribution margin ratio are $165,600 and 46%, respectively. The South Division's segment margin is $187,200. The company has
$280,800 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).
Sales
Variable expenses
Contribution margin
Traceable fixed expenses
Territorial segment margin
Common fixed expenses
Net operating income
Total Company
Amount
$ 1,080,000
$ 21,600
%
Amount
North
%
Divisions
Amount
South
%
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