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.

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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))

	Division
	Total compay		North		South
Sales	Amount	%	Amount	%	Amount	%
Variable expenses
Contribution margin
Traceable fixed expenses
Territorial segment margin
Common fixed expenses
Net operating income

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