5. 2.22 points Exercise 6-7 Segmented Income Statement LO6-4] overall sales, con

Question

5. 2.22 points Exercise 6-7 Segmented Income Statement LO6-4] overall sales, contribution margin ratio, and net operating income are S800.000, 60%, and $36,000, respectively. The North Division's respectively. The South Division's segment margin is $50,000. The company has $90,000 of common fixed expenses that cannot be traced to either division. tion margin and contribution margin ratio are $180,000 and 75%, Required: Prepare an is segmented by divisions. (Round your percentage answers to 1 decimal place (i.e.1234 should be entered as 12.3)) Divisions North South Amount $ 600,000 240,000 360,000 260,000 100,000 90,000 $ 10,000 100.0 240,000 60,000 180,000 130,000 100.0 360,000 180,000 180,000 130,000 208 S 50,000 100.0 50.0 50.0 36.1 13.9 Sales 40.0 60.0 43.3 16.7 50,000 15.0 25.0 75.0 54.2 Territorial segment margin Net o

Explanation / Answer

Contribution format income statement :

Total Total North North South South Amount % Amount % Amount % Sales 600000 100% 240000 100% 360000 100% Variable cost 240000 40% 60000 25% 180000 50% Contribution margin 360000 60% 180000 75% 180000 50% Traceable fixed expense 234000 39% 104000 43.3% 130000 36.1% Segment margin 126000 21% 76000 31.7% 50000 13.9% Common fixed expense 90000 15% Net operating income 36000 6%

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