Shannon Company segments its income statement into its North and South Divisions. The companyâs overall sales, contribution margin ratio, and net operating income are $480,000, 60%, and $48,000, respectively. The North Divisionâs contribution margin and contribution margin ratio are $135,000 and 75%, respectively. The South Divisionâs segment margin is $38,000. The company has $72,000 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))
| Shannon Company segments its income statement into its North and South Divisions. The companyâs overall sales, contribution margin ratio, and net operating income are $480,000, 60%, and $48,000, respectively. The North Divisionâs contribution margin and contribution margin ratio are $135,000 and 75%, respectively. The South Divisionâs segment margin is $38,000. The company has $72,000 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)) |
Related questions
Michaels Company segments its income statement into its East andWest Divisions. The companyâs overall sales, contribution marginratio, and net operating income are $610,000, 51%, and $53,000,respectively. The West Divisionâs contribution margin andcontribution margin ratio are $157,000 and 74%, respectively. TheEast Divisionâs segment margin is $77,000. The company has $54,000of common fixed costs that cannot be traced to either division.
| Required: |
Prepare an income statement for Michaels Company that uses thecontribution format and is segmented by divisions. (Inputall amounts as positive values except losses which should beindicated by a minus sign. Round your percentage answers to 1decimal place and all other answers to the nearest dollaramount.) |
Divisions | ||||||
Total Company | East | West | ||||
| Amount | % | Amount | % | Amount | % | |
| (Click to select)Variable expensesContributionmarginTraceable fixed expensesTerritorial segment marginNetoperating income (loss)SalesCommon fixed expenses | $ | $ | $ | |||
| (Click to select)Variable expensesSalesTerritorialsegment marginCommon fixed expensesTraceable fixedexpensesContribution marginNet operating income (loss) | ||||||
| (Click to select)Gross marginContribution margin | ||||||
| (Click to select)Traceable fixed expensesNet operatingincome (loss)Territorial segment marginCommon fixedexpensesSalesVariable expensesContribution margin | ||||||
| (Click to select)Territorial segment marginTraceablefixed expensesCommon fixed expensesVariable expensesContributionmarginNet operating income (loss)Sales | $ | $ | ||||
| (Click to select)Traceable fixed expensesNet operatingincome (loss)SalesCommon fixed expensesTerritorial segmentmarginContribution marginVariable expenses | ||||||
| (Click to select)Net operating incomeNet operatingloss | $ | |||||
