Shannon Company segments its income statement into its North and South Divisions. The company$$s overall sales, contribution margin ratio, and net operating income are $$1,110,000,44\%,$ and $$22,200,$ respectively. The North Division$$s contribution margin and contribution margin ratio are $$177,600$ and $48\%,$ respectively. The South Division$$s segment margin is $$199,800.$ The company has $$299,700$ 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 $\mathrm{.}1234$ should be entered as $12\mathrm{.}3).)$

Answer rating: 100% (QA)

To prepare the segmented income statement for Shannon Company well start with the companys overall sales contribution margin ratio and net operating i... View the full answer