Question - 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 $600,000, 50%, and $50,000, respectively. The Norm Division's contribution margin and contribution margin ratio are $150,600 and 75%, respectively. The South Division: segment margin is $70,000. The company has $60,000 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.