Shannon Company segments its income statement into 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 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 $($i$.$e $\mathrm{.}1234$ should be entered as $12\mathrm{.}3).$

Answer rating: 100% (QA)

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