Shannon Company segments its income statement into its North and South Divisions. The company's overall sales,...
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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 $350,000, 32%, and $7,000, respectively. The North Division's contribution margin and contribution margin ratio are $75,600 and 36%, respectively. The South Division's segment margin is $15,400. The company has $38,500 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. 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 Total Company North South Amount % Amount % Amount % 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 $350,000, 32%, and $7,000, respectively. The North Division's contribution margin and contribution margin ratio are $75,600 and 36%, respectively. The South Division's segment margin is $15,400. The company has $38,500 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. 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 Total Company North South Amount % Amount % Amount %
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Contribution Sales Variable cost Segment margin Cont... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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