24. Segmented Net Income. Sorrento Company has three divisionsNorthwest, South, and East. The following segmented financial information is for the most recent fiscal year ended December 31. Northwest Division South Division East Division Sales $ 22,000,000 $ 8,000,000 $ 18,000,000 Cost of goods sold 10,000,000 2,000,000 7,000,000 Allocated overhead 4,125,000 1,500,000 3,375,000 Selling and administrative 5,000,000 expenses 3,200,000 5,000,000 Assume the tax rate is 35 percent. Required: a. Prepare a segmented income statement using the format presented in Table 11.1. Include the profit margin ratio for each division at the bottom of the segmented income statement. East Division $18,000,000 24. Segmented Net Income a. Segmented income statements are shown below. Sorrento Company Segmented Income Statements For the Current Fiscal Year Ended December 31 Northwest South Division Division Sales Cost of goods sold Gross margin Allocated overhead Selling and administrative expenses Operating income Income tax expense (35% rate) Net income Profit margin ratio (round to nearest tenth %) Incorrect Incorrect East Division is: Correct Incorrect Incorrect Incorrect Incorrect Incorrect Incorrect Incorrect Incorrect