Shannon Company segments Its Income statement Into North and South Divisions. The company's overall sales, contribution margin ratio, and net operating Income are $720,000, 44%, and $14,400, respectively. The North Division's contribution margin and contribution margin ratio are $129,600 and 48%, respectively. The South Division's segment margin is $76,500. The company has $122,400 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 (l.e.1234 should be entered as 12.3).
Shannon Company segments Its Income statement Into North and South Divisions. The company's overall sales, contribution margin ratio, and net operating Income are $720,000, 44%, and $14,400, respectively. The North Division's contribution margin and contribution margin ratio are $129,600 and 48%, respectively. The South Division's segment margin is $76,500. The company has $122,400 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 (l.e.1234 should be entered as 12.3).
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 $720,000, 44%, and $14,400, respectively. The North
Division's contribution margin and contribution margin ratio are $129,600 and 48%, respectively. The South Division's
segment margin Is $76,500. The company has $122,400 of common fixed expenses that cannot be traced to elther
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 (l.e.1234 should be entered as 12.3).
Total Company
Amount
%
Amount
North
%
Divisions
Amount
South
%
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