EXERCISE $7-7$ Segmented Income Statement 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 $$500,000,46\%,$ and $$10,000,$ respectively. The North Division's contribution margin and contribution margin ratio are $$150,000$ and $50\%,$ respectively. The South Division's segment margin is $$30,000.$ The company has $$90,000$ 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.

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