Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Want to check my work let me know if my calculations are correct Shannon Company segments its income statement in its North and South Division.

Want to check my work let me know if my calculations are correct
image text in transcribed
Shannon Company segments its income statement in its North and South Division. The company's overall sales, contribution margin ratio, and net operating income are $460,000, 50%, and $36,800, respectively. The North Division's contribution margin and contribution margin ratio are $127.500 and 75%, respectively. The South Division's segment margin is $36,000. The company has $55,200 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 lice 1234 should be entered as 12.3)) Divisions Total Company North South Amount Amount Amount Sales $ 450,000 100.0 $ 170,000 100.00 $ 290,000 100.0 Variable expenses 230,000 50.0 42,500 25.0 187.500 650 Contribution margin 230,000 500 127.500 750 102,500 35.0 Traceable fixed expenses 36.800 3.0 10,500 26.300 Territorial segment margin 193 200 42.0 S 117.000 76,200 26.0 Common foed expenses 55.200 24.0 Net operating Income $ 138.000 % 6.0 9.0 69,0 $ 18.0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

15th edition

1259404781, 007802563X, 978-1259404788, 9780078025631, 978-0077522940

More Books

Students also viewed these Accounting questions