Shannon Company segments its income statement into its North and South Divisions. The companys overall sales, contribution margin ratio, and net operating income are $520,000, 60%, and $31,200, respectively. The North Divisions contribution margin and contribution margin ratio are $150,000 and 75%, respectively. The South Divisions segment margin is $42,000. The company has $62,400 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. (Do not round your intermediate percentage answers and round your final percentage answers to 1 decimal place (i.e. .1234 should be entered as 12.3).)

rev: 07_15_2014_QC_51467

Shannon Company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin ratio, and r segment margin is $42,000. The company has $62,400 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. (Do not round your interme Divisions Total Company North South Amount % Amount % Amount % Sales 520,000 100.0 Variable expenses. 40.0 Contribution margin 520,000 60.0 0 0.0 0.0 Traceable fixed expenses Territorial segment margin 520,000 60.0 0 0.0 $ 0 0.0 Common fixed expenses Net operating income 520,000 60.0 References eBook & Resources Financial Statements Difficulty: 1 Easy