ch 6 exer 9

Shannon Company segments its income statement into its North and South Divisions. The companys overall sales, contribution margin ratio, and net operating income are $780,000, 50%, and $62,400, respectively. The North Divisions contribution margin and contribution margin ratio are $247,500 and 75%, respectively. The South Divisions segment margin is $68,000. The company has $117,000 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. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3))

			Divisions
	Total Company		North		South
	Amount	%	Amount	%	Amount	%