Segmented Income Statement [LO6-4]
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 $620,000, 50%, and $49,600, respectively. The North Division’s contribution margin and contribution margin ratio are $187,500 and 75%, respectively. The South Division’s segment margin is $50,000. The company has $62,000 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. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3))