Smith's Company segments its income statement into it North and South Divisions. The company's overall sales, contribution margin ratio, and net operating income are $900,000, 50%, and $40,000, respectively. The North Division's contribution margin and contribution margin ratio are $120,000 and 55%, respectively. The South Division's segment margin in $50,000. The company has $20,000 of common fixed costs that cannot be traced to either division.
Required:
Prepare an income statement for Smith's Company that uses the contribution format and is segmented by the North and South divisions.