Question
Shannon Company segments its income statement into its North and South Divisions. The companys overall sales, contribution margin ratio, and net operating income are $400,000,
Shannon Company segments its income statement into its North and South Divisions. The companys overall sales, contribution margin ratio, and net operating income are $400,000, 60%, and $40,000, respectively. The North Divisions contribution margin and contribution margin ratio are $105,000 and 75%, respectively. The South Divisions segment margin is $30,000. The company has $48,000 of common fixed expenses that cannot be traced to either division.
I'm not sure what my "Traceable Fixed Expenses" should be. Nothing is working, I am thinking that it is 0 but when i put that in it marks incorrect.... HELP?
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Exercise 6-7 Segmented Income Statement LO6-4] 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 $400,000, 60%, and $40,000 respectively. The North Division's contribution margin and contribution margin ratio are $105,000 and 75% respectively. The South Division's segment margin is $30,000. The company has $48,000 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 $ 400,000 160,000 240,000 100.0's 25.0 75.0 260,000 125,000 135,000 100.0'/ $ Sales Variable expenses Contribution margin Traceable fixed expenses Territorial segment margin Common fixed expenses Net operating income 140,000 35,000 105,000 48.1 51.9 40.0 60.0 60.0 05,000 75.0 135,000 51.9 240,000 8,000 $ 192,000 60.0
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