Prepare an income statement-segmented by divisions


Michaels Company segments its income statement into its East and West Divisions. The company's overall sales, contribution margin ratio, and net operating income are $620,000, 57%, and $57,000, respectively. The West Division's contribution margin and contribution margin ratio are $153,000 and 79%, respectively. The East Division's segment margin is $70,000. The company has $51,000 of common fixed costs that cannot be traced to either division.

Required:

Prepare an income statement for Michaels Company that uses the contribution format and is segmented by divisions.

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Accounting Basics: Prepare an income statement-segmented by divisions
Reference No:- TGS052375

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