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 $760,000, 60%, and $45,600, respectively. The North Division’s contribution margin and contribution margin ratio are $240,000 and 75%, respectively. The South Division’s segment margin is $66,000. The company has $91,200 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. (Do not round your intermediate percentage answers and round your final percentage answers to 1 decimal place (i.e. .1234 should be entered as 12.3).) Divisions Total Company North South Amount % Amount % Amount % Sales $ 760,000 $ 320,000 $ 440,000 Variable expenses 304,000 80,000 224,000 Contribution margin 456,000 0.0 240,000 0.0 216,000 0.0 Traceable fixed expenses 319,200 169,200 150,000 Territorial segment margin 136,800 0.0 $ 70,800 0.0 $ 66,000 0.0 Common fixed expenses 91,200 Net operating income $ 45,600 0.0 sheet is drawn here
