Shannon Company segments its income statement into North and South Divisions.
The company's overall sales, contribution margin ratio, and net operating income are
$ and $ respectively. The North Division's contribution margin
and contribution margin ratio are $ and respectively. The South
Division's segment margin is $ The company has $ 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.
