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 $790,000, 48%, and $15,800, respectively. The North Division's contribution margin and contribution margin ratio are $150,800 and 52%, respectively. The South Division's segment margin is $95,000. The company has $150,100 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. 0.1234 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 $790,000, 48%, and $15,800, respectively. The North Division's contribution margin and contribution margin ratio are $150,800 and 52%, respectively. The South Division's segment margin is $95,000. The company has $150,100 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. 0.1234 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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Transcribed Image Text: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 $790,000, 48%, and $15,800, respectively. The North Division's contribution margin and
contribution margin ratio are $150,800 and 52%, respectively. The South Division's segment margin is $95,000. The company has
$150,100 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. 0.1234 should be entered as 12.3).)
Divisions
Total Company
North
South
Amount
%
Amount
%
Amount
%
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