Shannon Company segments its income statement into its North and South Divisions. The com- panys overall sales, contribution margin ratio, and net operating income are $500,000, 46%, and

$10,000, respectively. The North Divisions contribution margin and contribution margin ratio are $150,000 and 50%, respectively. The South Divisions 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 seg- mented 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.