Exercise 6-7 (Algo) Segmented Income Statement [LO6-4] 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 $600,000, 30%, and $12,000, respectively. The North Division's contribution margin and contribution margin ratio are $68,000 and 34%, respectively. The South Division's segment margin is $40,000. The company has $60,000 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. (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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Chapter1: Financial Statements And Business Decisions
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Exercise 6-7 (Algo) Segmented Income Statement [LO6-4]
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 $600,000, 30%, and $12,000, respectively. The North Division's contribution margin and
contribution margin ratio are $68,000 and 34%, respectively. The South Division's segment margin is $40,000. The company has
$60,000 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. (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
%
Transcribed Image Text:Exercise 6-7 (Algo) Segmented Income Statement [LO6-4] 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 $600,000, 30%, and $12,000, respectively. The North Division's contribution margin and contribution margin ratio are $68,000 and 34%, respectively. The South Division's segment margin is $40,000. The company has $60,000 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. (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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