Smiths Company segments its income statement into it North and South Divisions. The companys overall sales, contribution margin ratio, and net operating income are $900,000, 50%, and $40,000, respectively. The North Divisions contribution margin and contribution margin ratio are $120,000 and 55%, respectively. The South Divisions segment margin in $50,000. The company has $20,000 of common fixed costs that cannot be traced to either division.

Required:

Prepare an income statement for Smiths Company that uses the contribution format and is segmented by the North and South divisions.