Shannon Company segments its income statement into its North and South Divisions
ID: 2541118 • Letter: S
Question
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales, contribution margin ratio, and net operating income are $790,000, 48%, and $15,800, respectively. The North Division’s contribution margin and contribution margin ratio are $150,800 and 52%, respectively. The South Division’s segment margin is $95,000. The company has $150,100 of common fixed expenses that cannot be traced to either division.
Shannon Company segments its income statement into its North and South Divisions. The company's overall sales contribution margin ratio, and net operating income are $790,000, 48%, and $15,800, respectively. The North Division' contribution margin and contribution margin ratio are $150,800 and 52%, respectively. The South Division's segment margin is $95,000. The company has $150,100 of common fixed expenses that cannot be traced to either division red: ncomesompa yo Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3)) Divisions North South Total Company Amount Amount AmountExplanation / Answer
Divisions Total Company North South Amount % Amount % Amount % Sales $790,000 100.0% 290000 100.0% $500,000 100.0% Variable expenses $410,800 52.0% 139,200 48.0% 271,600 54.3% Contribution margin $379,200 48.0% 150,800 52.0% 228,400 45.7% Traceable fixed expenses $213,300 27.0% 79,900 27.6% 133,400 26.7% Division segment margin $165,900 21.0% $70,900 24.4% $95,000 19.0% Common fixed expenses 150,100 19.0% Net operating income $15,800 2.0%
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