Chapter $6$ Homework

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Exercise $6-7($Algo$)$ Segmented Income Statement $[$LO$6-4]$

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Shannon Company segments its income statement into North and South Divisions. The company's overall sales, contribution margin ratlo, and net operating income are $$990,000,36\%,$ and $$19,800,$ respectively. The North Division's contribution margin and contribution margin ratio are $$132,000$ and $40\%,$ respectively. The South Division's segment margin is $$151,800.$ The company has $$227,700$ of common fixed expenses that cannot be traced to elther division.

Required:

Prepare a segmented income statement for Shannon Company using the contribution format. For the company as a whole and for each division, show each Item on the segmented income statements as a percent of sales.

Note: Round your percentage answers to $1$ decimal place $($l$.$e $1234$ should be entered as $12\mathrm{.}3).$

$\backslash$table$[[,,,$Divisions$],[,$Total Company,North,South$],[,$Amount,$\%,$Amount,$\%,$Amount,$\%],[$Sales$,$$ $990,000,100\mathrm{.}0,,,,],[$Variable expenses,,,,,,$],[$Contribution margin,,,,,,$],[$Traceable fixed expenses,,,,,,$],[$Territorial segment margin,,,,,,$],[$Common fixed expenses,,,,,,$],[$Net operating income,,,,,,$]]$