Shannon Company segments its income statement into its North and South Divisions

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 S1,080,000, 42%, and $21.600. respectively. The North Division's contribution margin and contribution margin ratio are $165,600 and 46%. respectively. The South Division's segment margin is $187,200. The company has $280,800 of commorn 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. 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 (.e 1234 should be entered as 12.3) 100.0 360 100? 720 100.0 1,080,00 ariable expenses 626,400 ibution Traceable fixed Territorial segment 453,6 42.01 165,6 46.0 288 40 n fixed t operating

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Company North South Amount % Amount % Amount % Sale 1080000 100% 360000 100% 720000 100% Variable Expense 626400 58% 194400 54% 432000 60 Contribution Margin 453600 42% 165600 46% 288000 40 Traceable Fixed Expenses 151200 50400 100800 Territorial Segment Margin 302400 115200 187200 Common Fixed Expense 280800 Net Operating Income 21600 Step:1 Company North Territorial Segment Margin 302400 115200 (21600+280800) (302400-187200) Step:2 Company North South Traceable Fixed Expenses 151200 50400 100800 453600-302400 165600-115200 151200-50400 Step:3 South Contribution Margin 288000 187200+100800 Step:4 South Sale 1080000-360000 720000 Variable Expense 626400-194400 432000

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