2
answers
3
watching
2,570
views
21 Nov 2017
EXERCISE 6-7 Segmented Income Statement [L06-4] Shannon Company segments its income statement into its North and South Divisions. The com- pany's overall sales, contribution margin ratio, and net operating income are $500,000, 46%, and $10,000, respectively. The North Division's contribution margin and contribution margin ratio are $150,000 and 50%, respectively. The South Division's segment margin is $30,000. The company has $90,000 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 seg- mented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales.
EXERCISE 6-7 Segmented Income Statement [L06-4] Shannon Company segments its income statement into its North and South Divisions. The com- pany's overall sales, contribution margin ratio, and net operating income are $500,000, 46%, and $10,000, respectively. The North Division's contribution margin and contribution margin ratio are $150,000 and 50%, respectively. The South Division's segment margin is $30,000. The company has $90,000 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 seg- mented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales.
Read by 3 people
27 Jun 2023
Nestor RutherfordLv2
22 Nov 2017
Already have an account? Log in
Related questions
| 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)) |
