egment Analysis Question 2 (of 5) value 4.00 points Exercise 6-7 Segmented Incom

Question

egment Analysis Question 2 (of 5) value 4.00 points 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 rato, and net operating income are S400,000, 60%, and $40,000. respectively The North Dvsion's contribution marg n and contribution margin rato are stos,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 ontribution margin raceable foxed expenses Torrtorial segment margn ommon foxed exponses 0.0 0.0 00 S 00 $ 0.0 operating income O Type here to search

Explanation / Answer

Total company North South Amount % Amount % Amount % Sales 400000 100.0% 140000 100.0% 260000 100.0% Variable expenses 160000 40.0% 35000 25.0% 125000 48.1% Contribution margin 240000 60.0% 105000 75.0% 135000 51.9% Traceable fixed expenses 152000 38.0% 47000 33.6% 105000 40.4% Territorial segment margin 88000 22.0% 58000 41.4% 30000 11.5% Common fixed expenses 48000 Net operating income 40000

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